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DGale Johnson Was an Economist at Iowa State and Later

Question 216

Multiple Choice

D.Gale Johnson was an economist at Iowa State and later the University of Chicago who studied Soviet agriculture.Johnson found that on large Soviet collective farms,crops often rotted in the field as mechanical harvesters were not deployed in time for the harvest.They followed a harvest schedule set centrally,and often the harvesting machines sat idle during the peak harvest season.This outcome is an example of ________.Explain your answer.


A) the invisible hand
B) a sunk cost
C) a coordination problem
D) an incentive problem

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