Suppose that an individual sees a tremendous opportunity to produce and sell a new product but dismisses the idea because there is no way to exploit this opportunity for personal gain. This situation best identifies the
A)coordination problem under communist central planning.
B)self-sufficiency dilemma under communism.
C)asymmetric information problem under communism.
D)incentive problem under communist central planning.

Question

Quizplus · Accepted Answer

The situation described is an example of the incentive problem under communist central planning, where the lack of personal gain or profit motive can lead to a lack of motivation to innovate or take advantage of opportunities, as individuals do not see a direct benefit from their efforts.

Suppose That an Individual Sees a Tremendous Opportunity to Produce