Question

Prior to the collapse of communism, communist countries worked on the premise that economic well-being could be best attained by:________ a) a market economy. b) a strong reliance on prices and individuals' self-interests. c) a system of large privately-owned firms.

Answer 1

Communist countries believed economic well-being could be best attained by a command economy. This means that the government had control over resources and production decisions. However, some countries have implemented market-oriented reforms to address economic challenges while still retaining elements of communism.

Step-by-step explanation:

Before the collapse of communism, communist countries worked on the premise that economic well-being could be best attained by a command economy. In a command economy, the government has control over resources and production decisions. This means that the government owns property, farms, manufacturing, and businesses, and determines what should be produced and how much.

Under communism, the focus is on equality rather than individual self-interests or large privately-owned firms. The goal is to prevent the exploitation of workers and create a more equal society. However, in practice, many communist countries faced economic challenges, leading some to shift towards market-oriented reforms.

Answer 2

D) the actions of government central planners

Step-by-step explanation:

Communism was an economic doctrine where the government imposed an extremely rigid command economic system, where the government was in total control of the economy. This is a type of command economic system where the government decides on most economic affairs, and it doesn't favor private businesses. Prices are usually fixed, including the prices of goods and labor. Domestic private companies are outlawed, and foreign private companies are not willing to risk investing in communist country. Communism favored income equality and full employment, at the expense of decreasing economic liberties.