In the Former Soviet Union,producers Were Paid for Meeting Output

question 10

Multiple Choice

In the former Soviet Union,producers were paid for meeting output targets,not for selling products.Under those circumstances,what were the economic incentives for producers?

• A)to produce good quality products so that society would benefit from the resources used
• B)to conserve on costs,so as to maintain efficiency in the economy
• C)to produce enough to meet the output target,without regard for quality or cost
• D)to produce those products that society desires most

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Definitions:

Percentage Change

A calculation that indicates how much something increases or decreases in value, expressed as a ratio of the initial value to the difference in value, times 100.

GDP Deflator

The GDP deflator is an economic metric that converts the current prices of all goods and services produced in an economy to constant prices, allowing for inflation adjusted comparisons.

Real GDP

The calculation of a nation's economic production taking into account adjustments for variations in prices and inflation, revealing the actual value of goods and services generated.

Percentage Change

A mathematical calculation that represents the degree of change over time as a proportion of the original value, often used to measure growth or decline.