Under Soviet collective farming after World War II,workers on collective farms were allowed to work small plots (no more than 1 hectare or about 2.5 acres)on which they could grow their own food and sell any surplus.Economist D.Gale Johnson found that while these small plots amounted to only 3.5 percent of agricultural land under cultivation in the Soviet Union,they produced more than one-third of the nation's agricultural output.Johnson's findings illustrate which of the following as it relates to central planning of agricultural production on large collective farms?
A) Central planning on the collective farms was successful in increasing output.
B) Central planning on the collective farms failed to increase demand.
C) Central planning on the collective farms resulted in large sunk costs.
D) Central planning on the collective farms failed to solve the incentive problem of aligning the interests of the landowner (the government) with the interest of the workers.

Question

Quizplus · Accepted Answer

The success of small plots in producing a significant portion of agricultural output shows that central planning on large collective farms failed to solve the incentive problem of aligning the interests of the government landowner with those of the workers. Workers were not motivated to work hard on the collective farms because they did not personally benefit from their efforts, while the government could not monitor or enforce efficient production practices. Allowing workers to work on their small plots gave them a personal stake in the success of their farming efforts, leading to increased productivity.

Under Soviet Collective Farming After World War II,workers on Collective