Question

The demise of communism as an economic and political system can be explained by all of the following facts except:

A) communism is not an effective economic system.
B) relatively superior performance of the world's market economies.
C) communism works when the currency exchange rate is weak.
D) difficult to manage national economies with a single central plan.
E) increased public participation in matters of state.

Answer 1

The incorrect statement regarding the demise of communism is that 'communism works when the currency exchange rate is weak'. This does not align with historical evidence or economic principles, which instead point to systemic inefficiencies and comparative underperformance as key reasons for the system's fall. So, the correct answer is option c.

Step-by-step explanation:

The question posed by the student is concerned with the factors that have contributed to the demise of communism as an economic and political system. Analyzing the provided options, we can identify the fact that does not explain the fall of communism: 'Communism works when the currency exchange rate is weak'. This statement does not fit with the historical or economic analysis of why communism faced challenges.

Historically, the demise of communism has been attributed to various factors. These include the inefficiency of a command economy, the outperformance of market economies, difficulty in managing national economies with centralized planning, and a desire for increased public participation in government.

The idea that communism could work effectively with a weak currency exchange rate is not supported by economic principles or historical evidence. Thus, we can conclude that this statement does not explain the fall of communism.