Under central planning, some group has to decide how to get the necessary inputs produced in the right amounts and delivered to the right places at the right time. This is a nearly impossible task without markets and profits. This quotation best identifies the a. coordination problem under central planning. b. incentive problem under central planning. c. sell-sufficiency dlemma under communism d. resource overcommitment problem under communism

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Business

Eliza Richmond

15 August, 06:31

Under central planning, some group has to decide how to get the necessary inputs produced in the right amounts and delivered to the right places at the right time. This is a nearly impossible task without markets and profits. This quotation best identifies the a. coordination problem under central planning. b. incentive problem under central planning. c. sell-sufficiency dlemma under communism d. resource overcommitment problem under communism

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Answers (1)

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Julius Quinn · Answer 1

The correct answer is A

Explanation:

Central planning is the planning where the centralized, large and the powerful government evaluates or determines the goals, strategy and the resource distribution and the economy or the society development. It is opposite of the capitalism and the free market.

Under the central planning, the problem of coordination, is the incentive problem, within the communist central planning states the idea which the entrepreneurs, workers and the managers could not gain personally through responding the surpluses or shortages or through improved as well as new products.

Therefore, the quotation is identifies as the coordination problem.