Question

The end of Communist rule in Eastern Europe in the 1990s was due primarily to the economies there. State-controlled production led to workers being underpaid with little incentive to produce more or better goods. What conclusion can you draw from this passage? A) Taxes were too low to encourage production. B) People did not have enough skills to be successful. C) Eastern European countries were run as market economies. D) Eastern European countries were run as command economies.

Answer 1

The passage indicates Eastern European countries under Communist rule were characterized by state-controlled production and command economies, leading to economic inefficiency. The collapse of Communism resulted in a transition towards market economies and privatization of industries.

Step-by-step explanation:

The end of Communist rule in Eastern Europe in the 1990s led to significant economic changes. The passage suggests that the command economies in place under Communist rule were characterized by state-controlled production and lack of incentives for workers to improve production, leading to an inefficient economic system. The correct conclusion to draw from this passage is D) Eastern European countries were run as command economies.

The transition from command economies to market-based systems began after the collapse of Communism. Central planning gave way to economic reforms, leading to the opening of markets and privatization of industries. This shift from state control to more individual and private enterprise was essential in integrating Eastern European countries into the EU and moving towards more open, market economies.