Universal price controls in the Soviet Union:
A) led to widespread prosperity.
B) harmed powerful interests in the short run.
C) caused never-ending shortages and misallocations.
D) meant no one ever had to wait in line.

Question

Quizplus · Accepted Answer

Universal price controls in the Soviet Union caused never-ending shortages and misallocations. By fixing prices for goods and services below their market levels, the state ensured that demand would always exceed supply, leading to long lines and rationing. This resulted in a lack of incentives for producers to increase their output, leading to further shortages and misallocations.

Universal Price Controls in the Soviet Union