In which of the following economies would manufacturing firms most likely produce defective products due to low incentives for quality outputs?

Question

Quizplus · Accepted Answer

In centrally planned economies, the government controls all aspects of the economy, including the production and distribution of goods. Manufacturing firms may have low incentives for quality outputs as prices and production targets are set by the government, and there may not be competitive pressures to produce high-quality products.

In Which of the Following Economies Would Manufacturing Firms Most