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Think about the evidence presented in the video for why market economies prevailed over Soviet-style communist
economies. Match the evidence from the video with the economic statement it supports.

ANSWER: The government not the market deciding what gets produce leads to producing many items consumers don’t want
there was an abundance of flannel pants and lack of jeans

Command economies have a lack of incentives to product what would sell
The communist party knew what everyone needed (or thought it did)

The government answers economic questions in a command economy
The Soviet unions economy was based on centralized planning

Resources can be miss used when the market doesn’t decide how resources are used
The emphasis was on military production not fashionable clothes

Market systems respond to signals from consumers
Jeans were being sold in the west and not the Soviet Union

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