Scenario: Learning the American Way
Sergei Chernovl is a Russian exchange student.To learn more about how a market economy functions,Sergei is conducting research comparing businesses in Russia with businesses in the United States.
-Sergei recognizes that one of the major reasons why central planning declined was its failure to ________.

Question

Quizplus · Accepted Answer

Central planning failed because it did not create economic value. Central planning systems were focused on fulfilling government quotas and did not have the same incentives for efficiency and innovation as market economies.