How was the Soviet economy managed?
1) Through a free-market system
2) Through private enterprise
3) It was planned and controlled by the state
4) It was operated by international corporations

3

The Soviet economy was centrally planned and controlled by the state.

The Union of Soviet Socialist Republics (USSR) came into being after the socialist revolution in Russia in 1917. The revolution was inspired by the ideals of socialism, as opposed to capitalism, and the need for an egalitarian society. This was perhaps the biggest attempt in human history to abolish the institution of private property and consciously design a society based on principles of equality. In doing so, the makers of the Soviet system gave primacy to the state and the institution of the party. The Soviet political system centred around the communist party, and no other political party or opposition was allowed. The economy was planned and controlled by the state. After the Second World War, the east European countries that the Soviet army had liberated from the fascist forces came under the control of the USSR. The political and the economic systems of all these countries were modelled after the USSR. This group of countries was called the Second World or the ‘socialist bloc’. The Warsaw Pact, a military alliance, held them together. The USSR was the leader of the bloc.