"Because the outputs of many industries are the inputs to other industries, the failure of any single industry to fulfil the output quantities specified in the central plan caused a chain reaction of adverse repercussions on production." This quotation best identifies the
A)incentive problem under central planning.
B)self-sufficiency dilemma under communism.
C)resource overcommitment problem under communism.
D)coordination problem under central planning.

Question

Quizplus · Accepted Answer

The quotation describes the coordination problem under central planning, where the interdependence of industries means that a failure in one area can lead to widespread production issues, highlighting the difficulty of centrally managing all aspects of an economy efficiently.

"Because the Outputs of Many Industries Are the Inputs to Other