Question

Question 24 (2 points)

Write two major characteristics of the Soviet Economy during Communism that led
to the collapse of the Soviet Union in 1991.
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Answer 1

Two major characteristics of the Soviet Economy during Communism that led to the collapse of the Soviet Union in 1991 were centralized planning and a lack of incentives for workers.

Step-by-step explanation:

Soviet Economy during Communism

Two major characteristics of the Soviet Economy during Communism that led to the collapse of the Soviet Union in 1991 were:

1. Centralized planning: The Soviet economy was heavily centralized, with the government controlling all major industries and setting production targets. This lack of market competition and inefficiency resulted in a stagnant economy, as resources were misallocated and innovation was stifled.
2. Lack of incentives: Under the Soviet system, there was minimal incentive for workers to be productive or innovative. Since everyone was guaranteed employment and wages were relatively equal, there was little motivation for individuals to work harder or contribute more to the economy.

These characteristics, coupled with other factors such as corruption and the inability to adapt to global market changes, ultimately led to the collapse of the Soviet Union in 1991.

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