Question

Answer the following questions:

1. According to Arakelian, who decides what will be produced in the Soviet Union?

2. According to von Mises, who decides what will be produced in the United States?

This question is worth 100 points if you answer correctly.

Answer 1

A Arakelian wrote a book series called "Get-to-know-the-USSR". He wrote that the central planning bureaucracy in Soviet Union decided what goods (and how many) would be produced.

L Von Mises was an Austrian School economist who studied human choice and action in the 40s. In his writing, he argued that in the United States the free market decided what goods (and how much) will be produced.

Answer 2

According to Arakelian, the Council of Ministers of the USSR decides what will be produced in the Soviet Union. They lead in planning, establishing national economic connections and proportions and assures the coordination in all the development of all branches and spheres of Soviet economy.

According to Mises, the consumers decide what will be produced in the United States. They determine the amount of their purchases both the quality and quantity of production. They also determine the prices of consumers’ goods and the price of all material factors of production and the wages of all the employed.