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.

Question

Quizplus · Accepted Answer

Under the Soviet system of communism, managers had little incentive to develop new technologies because their pay was not tied to the firm's profits or performance, but rather to their adherence to plan targets set by the government. As a result, there was little competition, innovation, or efficiency in the Soviet economy, and technological progress was slow compared to other countries.

Under the Soviet System of Communism