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Centralized Economic Planning in the Soviet Union Was the Epitome

Question 219

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Centralized economic planning in the Soviet Union was the epitome of the top-down approach: factories received quotas from Moscow that they had to fill. Enforcing such orders was difficult since there were so many factories to monitor. For example, a nail factory might fulfill an order of 250,000 nails by making very small nails, or substandard nails. Suppose Moscow wants nails to build houses. It is actually paying for:


A) high-quality nails.
B) productivity improvements.
C) scrap metal.
D) whatever could minimally qualify as a "nail."

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