The Incentive Problem Under Communist Central Planning Refers to the Idea

question 2

Multiple Choice

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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Definitions:

Slavery

A system in which individuals are owned by others, deprived of personal freedom, and compelled to perform labor or services.

Frederick Douglass

An African American social reformer, abolitionist, orator, writer, and statesman in the 19th century, who escaped from slavery.

John Brown

An American abolitionist leader known for his role in the Bleeding Kansas conflict and his raid on Harpers Ferry, aiming to initiate a slave rebellion.

American Identity

The collective understanding of what it means to be American, characterized by shared values, traditions, and beliefs that define the national character of the United States.