A problem inherent in centrally planned economies is:
A)households and firms make poor decisions in choosing how resources are allocated.
B)there is too little production of low-cost, high-quality goods and services.
C)production managers are more concerned with satisfying consumer wants than with satisfying government's orders.
D)exports tend to exceed imports.

Question

Quizplus · Accepted Answer

In centrally planned economies, the government controls the allocation of resources and production decisions. This often leads to a lack of competition and innovation, resulting in a shortage of low-cost, high-quality goods and services.

A Problem Inherent in Centrally Planned Economies Is