One of the most significant problems faced by communist economies is:
A)a great inequality in the distribution of wealth and income.
B)severe inflationary pressures due to rapid economic growth.
C)too little government regulation of economic activity.
D)persistent shortages of basic goods such as food and clothing.

Question

Quizplus · Accepted Answer

Communist economies often face persistent shortages of basic goods such as food and clothing due to inefficiencies in production and distribution. This is because the government controls the means of production and distribution and often fails to allocate resources efficiently. In addition, there is often little incentive for individuals to work hard or innovate since the government controls the means of production, which can lead to a lack of innovation and inefficiencies in production. As a result, communist economies often struggle to meet the basic needs of their citizens.

One of the Most Significant Problems Faced by Communist Economies