The central planning approach proved ________ because ________.
A) successful; central planners use state-of the-art military computers to efficiently allocate resources
B) a failure; it was never given enough time to be successfully implemented in most countries
C) successful; central planners, unlike CEOs, are not solely interested in maximizing profits and raising prices
D) a failure; central planners lack information and incentives to allocate resources efficiently

Question

Quizplus · Accepted Answer

The central planning approach proved a failure because central planners lacked information and incentives to allocate resources efficiently. Without market signals such as prices and profits, central planners were unable to accurately determine supply and demand, leading to inefficiencies in resource allocation. Additionally, central planners often lacked the necessary knowledge and expertise to efficiently allocate resources in complex economies.

The Central Planning Approach Proved ________ Because ________

The Central Planning Approach Proved Because