Countries that wish to avoid shortages and surpluses of goods should adopt a communist system.
Level of Learning 2: Understanding of concepts and principles

Question

Quizplus · Accepted Answer

Communist systems aim to eliminate private ownership and establish collective ownership and control of goods and resources. However, history has shown that communist economies are prone to shortages due to central planning inefficiencies and lack of market incentives, as seen in Soviet Union and China. Surpluses can also occur in communist systems when the state overproduces certain goods at the expense of others. Therefore, a mixed economy that combines market mechanisms with government intervention may be a better system to avoid shortages and surpluses.

Countries That Wish to Avoid Shortages and Surpluses of Goods