Question

In: Economics

The Soviet system of central planning was very successful in which of the following ways? A.Information...

The Soviet system of central planning was very successful in which of the following ways?

A.Information technology (IT) advancements

B.Material rewards and upward mobility in their state-owned corporations

C.Markets in the allocation of land and oil

D. Space exploration

Solutions

Expert Solution

Answer : B. Material rewards and upward mobility in their state owned corporations.

The rewards in the Soviet Union was very different whether in terms of money or self-esteem. The Soviet Union economic development was inclined to the industry sector over any other sector in general. More preference was given to the heavy industries and an industry worker was given better compensation and rewards than a clerical worker. And hence a ridge was created between the industry sector and service sector, of which the latter is considered inferior to the former.

And related to the upward mobility, people who are of any inherent occupation became manual Workers in Industries and thereby a change in social strata was effectively created. Also, the factory jobs required skilled labour and acquiring skills made their occupational mobility high due to the inflow of more people. It created social stability and balance among different sectors.


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