What type of economy eventually led to the soviet union's collapse?
1) a devolping world economy
2)a non surplus economy
3)a command economy
4)a demand economy
i choose 3
Right.
You are correct! The type of economy that eventually led to the collapse of the Soviet Union was a command economy, represented by option 3. Now, let me explain what a command economy is and how it contributed to the downfall of the Soviet Union.
A command economy is an economic system in which the government has direct control over most aspects of the economy. In this type of system, the government determines what goods and services will be produced, how they will be produced, and in what quantities. The government also controls the distribution and pricing of goods and resources.
In the case of the Soviet Union, the command economy resulted in several economic problems that eventually led to its collapse. Firstly, central planning and control stifled innovation and efficiency. Decision-making was concentrated in the hands of government officials who often lacked the knowledge and incentives to make effective economic choices. This led to inefficiencies, suboptimal resource allocation, and the production of lower quality goods.
Secondly, the lack of incentives and competition in a command economy led to a lack of innovation and productivity growth. Without market forces of supply and demand, there was little motivation for businesses and workers to be efficient or to innovate. As a result, the Soviet economy fell behind technologically and struggled to keep up with the advancements of other countries operating under different economic systems.
Additionally, the command economy created shortages and imbalances in the supply of goods. Central planning could not accurately predict or respond to consumer demands, resulting in frequent shortages of basic goods. This led to rationing and long waiting times for essential products, creating dissatisfaction among the population.
Furthermore, the inflexibility of a command economy made it difficult to adapt to changing global economic conditions. As the Soviet Union faced increasing competition from capitalist countries and experienced a decline in oil prices, its centrally planned economy was ill-equipped to adjust and respond to these challenges.
In summary, the command economy in the Soviet Union impeded innovation, led to inefficiencies, caused shortages, and made it difficult to adapt to changing economic conditions. These factors ultimately contributed to the collapse of the Soviet Union.