Scenario: Learning the American Way
Sergei Chernovl is a Russian exchange student. To learn more about how a market economy functions, Sergei is writing a research paper comparing business in Russia with business in the United States.
-Sergei recognizes that all of the following were reasons why central planning failed EXCEPT the failure to ________.
A) create economic value
B) provide incentives
C) control rampant economic growth
D) satisfy consumer needs

Question

Quizplus · Accepted Answer

The failure to control rampant economic growth was not a reason why central planning failed. In fact, central planning often struggled to stimulate economic growth, particularly in the Soviet Union where shortages were common. The other options, creating economic value, providing incentives, and satisfying consumer needs, are all important elements of a market economy and areas where central planning often fell short.