Which of the following statements about central planning is accurate?
A) It emphasized production of consumer goods over infrastructure.
B) It emphasized agricultural production at the expense of the industrial sector.
C) It proved unable to create strong worker incentives.
D) It encouraged too much interdependence among domestic economic entities.

Question

Quizplus · Accepted Answer

Central planning involves government control of economic activity, such as production and distribution of goods and services. One of the major criticisms of central planning is that it creates weak incentives for workers, as they are not directly tied to the success or failure of their work. This can lead to inefficiencies and slow economic growth. Therefore, statement C is accurate as it highlights central planning's failure to create strong worker incentives.

Which of the Following Statements About Central Planning Is Accurate