The failure of communism in a large number of countries is at least partly explained by
A)the fact that those countries relied absolutely on the invisible hand.
B)the fact that those countries did little or nothing to restrict trade with other countries.
C)the lack of information,on the part of central planners in those countries,about tastes and preferences in their economies.
D)the lack of information,on the part of central planners in those countries,about how much authority the government had in affecting economic outcomes.

Question

Quizplus · Accepted Answer

Central planners in communist countries lacked information about consumer preferences and market demands, which made it difficult for them to allocate resources efficiently. This resulted in shortages of goods and services, and ultimately contributed to the failure of the communist economic system.

The Failure of Communism in a Large Number of Countries