Question

made it difficult for private producers to start new companies and run them independently as it required the government's approval.

• A. Trade barriers
• B. Quotas
• C. Heavy taxes
• D. License system

Answer 1

The correct option is D License system

In 1991, private producers required licenses to start a business. The government decided which product to produce and how much to produce. There were also checks on their selling price. This did not allow companies to run independently. This was known as the license system.