Are bureaucrats better at allocating resources than the

Question

Are bureaucrats better at allocating resources than the market? No. The biggest reason why "intervention" policies did not result in bad investment is that although the east Asian superstars deviated from free-market policies they did so by less than most other developing countries: the prices of capital and labor were less distorted than in most of Latin America.

The writer of the above passage is suggesting that

A) Capital and Labor were under-priced in East Asia.
B) "Interventionist" policies resulted in poor economic performance for many Latin American countries.
C) "Interventionist" policies caused poor economic performance in many developing countries.
D) Bureaucrats should stop allocating resources.
E) None of the above.

zuberahmed · Answer

E, what is the source of this question?? doesn't look like a GMAT one though.

mourinhogmat1 · Answer

Are bureaucrats better at allocating resources than the market? No. The biggest reason why "intervention" policies did not result in bad investment is that although the east Asian superstars deviated from free-market policies they did so by less than most other developing countries: the prices of capital and labor were less distorted than in most of Latin America.

deviating less from free market policies(intervention policies) resulted in no bad investment.

The writer of the above passage is suggesting that

A) Capital and Labor were under-priced in East Asia.  FALSE  
B) "Interventionist" policies resulted in poor economic performance for many Latin American countries.  FALSE because the passage says resulted in no bad investment 
C) "Interventionist" policies caused poor economic performance in many developing countries.  TRUE? Because in this context he says intervention policies did not result in bad investment which means that in the original context they mention most other developing countries. 
D) Bureaucrats should stop allocating resources.  FALSE. out of scope  
E) None of the above.

Definitely not GMAT but I am going with C. OA?

Are bureaucrats better at allocating resources than the

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