APFIVE Unintended Consequences of Planned Economies
Based on the example of the Soviet Union, which of the following statements best illustrates an unintended consequence of planned economic systems?
A
The Soviet Union’s Five‐Year Plans ultimately led to stagnation and shortages due to the lack of market incentives for innovation and efficiency.
B
The Soviet Union’s Five‐Year Plans ensured unlimited economic growth and eliminated resource shortages across all sectors.
C
The Soviet Union’s Five‐Year Plans were based on free‐market principles that led to hyper‐competition in industries.
D
The Soviet Union’s Five‐Year Plans focused solely on consumer goods, resulting in surpluses but no quality improvements.