Question $30(1$ point$)$

In the $1950$s$,$ the Soviet Union invested heavily in capital, increasing its capital stock. However, the Soviet Union's growth rate lagged behind the growth rate in the United States. Slower growth in the Soviet Union contributed to the end of the cold war. The Soviet Union tried to match military spending with the U$.$S$.,$ but, since the Soviet Union's economy was not growing as fast, military spending represented a significantly larger part of the Soviet Union's aggregate expenditure than in the U$.$S$.$ The result was that there was less capital available for investment in the Soviet Union, and grocery stores either had empty shelves or long lines of people waiting to buy food. Explain why the Soviet Union's growth rate was lower than the U$.$S$.\text{'}$s growth rate during much of the cold war period $($say$,$ from $1945-1989).$

The Soviet government invested too heavily in education and healthcare.

Soviet rates of saving and investment were too high, leading to insufficient consumption.

The Soviet economic system did not provide sufficient incentives to develop new technologies.

Soviet courts relied on the rule of law to uphold