Factors contributing to the collapse of centrally planned economies include all the following EXCEPT ________.
A) little attention was paid to the task of producing quality goods and services at the lowest possible cost
B) government ownership of economic resources reduced incentives for people and organizations to maximize the benefits obtained from the resources
C) economic growth in countries like Hong Kong, Singapore, South Korea, and Taiwan took opportunities away from the centrally planned economies and caused economic distress
D) would-be consumers in many centrally planned economies were tired of standards of living that had slipped far below those of their counterparts in market economies

Question

Quizplus · Accepted Answer

The other three factors listed all contributed to the collapse of centrally planned economies. Little attention to producing quality goods and services led to a lack of competitiveness and decreased demand. Government ownership reduced incentives for innovation and efficiency. Consumers in centrally planned economies were dissatisfied with their living standards compared to market economies. Economic growth in other countries may have added to the pressure, but it was not the primary cause of collapse.

Factors Contributing to the Collapse of Centrally Planned Economies Include