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

Question

Quizplus · Accepted Answer

In communist economies, decisions about production and distribution are made by the government rather than market forces. This can lead to inefficiencies and shortages of basic goods. Because the government sets prices and wages, there is no incentive for producers to increase output, leading to shortages of goods such as food and clothing.

One of the Most Significant Problems Faced by Communist Economies