U.S. television reports in the 1970s and 1980s showed citizens in the Soviet Union standing in long lines to buy bread and other necessities in stores with nearly bare shelves. What led to this situation?
A) the inability of government central planners to adequately anticipate consumer demands
B) lack of resources to produce adequate supplies of needed goods
C) high taxes forcing producers such as bakeries out of business
D) a "brain drain" of businesspeople who could anticipate and meet consumer demand
E) private business owners "creating" scarcity to force up prices
Answer: A
Explanation: A) Government-set prices under communism did not offer an accurate picture of supply and demand, leading to faulty central planning on production.
You might also like to view...
A cost that is incurred if some aspect of a service must be performed again is called a(n):
A) yield loss. B) prevention cost. C) appraisal cost. D) rework cost.
Managers who rely on traits and expertise that brought them success in the past are more likely to get into trouble when _____
a. the current environment has changed b. they work for a new organization c. they get a promotion with new responsibilities d. all of the above