The incentive problem under communist central planning refers to the idea that:

A. planners had to direct required inputs to each enterprise.

B. workers, managers, and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products.

C. the immediate effect of more investment was less consumption.

D. exports had to be equal to imports for a central plan to work.

Question

Business

Markus Newman

25 June, 20:29

The incentive problem under communist central planning refers to the idea that:

A. planners had to direct required inputs to each enterprise.

B. workers, managers, and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products.

C. the immediate effect of more investment was less consumption.

D. exports had to be equal to imports for a central plan to work.

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Answers (1)

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Maximus Patel · Answer 1

Answer and Explanation:

B. workers, managers, and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products.