"Because the Outputs of Many Industries Are the Inputs to Other

question 101

Multiple Choice

"Because the outputs of many industries are the inputs to other industries, the failure of any single industry to fulfil the output quantities specified in the central plan caused a chain reaction of adverse
Repercussions on production." This quotation best identifies the

• A) incentive problem under central planning.
• B) self-sufficiency dilemma under communism.
• C) resource overcommitment problem under communism.
• D) coordination problem under central planning.

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Definitions:

Athletic Contests

Competitive physical activities or sports where participants aim to display superior strength, speed, or skill.

Trade and Economic Exchanges

The act of buying, selling, or exchanging goods and services between people or countries, facilitating the distribution of resources, creation of wealth, and economic interdependence.

Self-fulfilling Prophecy

A forecast that, whether directly or indirectly, ensures its own fulfillment through a positive loop between belief and action.

Social Trap

Situations where individuals or groups act against their long-term communal interests by pursuing short-term personal gains.