Under the Soviet system of communism,
A)managerial pay was determined by the extent to which managers could lower the per-unit costs of production.
B)technological progress was slow because managers had little incentive to develop new technologies.
C)competitive pressures in the Soviet Union allowed the country's technological progress to keep pace with the rest of the world.
D)the per-worker production function in the Soviet Union shifted up more rapidly than production functions in other countries.
E)worker's incentives exert effort were too strong, ultimately leading to a reduction in productivity.

Question

Quizplus · Accepted Answer

Under the Soviet system of communism, managers had little incentive to develop new technologies as their salaries were not tied to the profits or success of the company, but rather were determined by the government. This lack of incentive likely contributed to slower technological progress in the Soviet Union compared to other countries.

Under the Soviet System of Communism