One of the most significant problems faced by communist nations is
A) 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

The problem with a system where all economic decisions are made by the state is that the government has no way of knowing what to produce. As a result, shortages of many items regularly develop.

One of the Most Significant Problems Faced by Communist Nations