Suppose that an individual sees a tremendous opportunity to produce and sell a new product but dismisses the idea because there is no way to exploit this opportunity for personal gain. This situation
Best identiﬁes the
A) coordination problem under communist central planning.
B) self-suﬃciency dilemma under communism.
C) asymmetric information problem under communism.
D) incentive problem under communist central planning.

Question

Quizplus · Accepted Answer

The individual in this scenario dismisses a potentially profitable opportunity because there is no way for them to personally benefit from it. This highlights the incentive problem that arises under communist central planning, where individuals lack the personal incentive to pursue potentially beneficial opportunities. Choices A, B, and C do not accurately describe the situation presented in the scenario.

Suppose That an Individual Sees a Tremendous Opportunity to Produce