Under central planning,some group has to decide how to get the necessary inputs produced in the right amounts and delivered to the right places at the right time.This is a nearly impossible task without markets and profits. This quotation best identifies the:A) incentive problem under central planning.B) coordination problem under central planning.C) self-sufficiency dilemma under communism.D) resource overcommitment problem under communism.

Question

Under central planning,some group has to decide how to get the necessary inputs produced in the right amounts and delivered to the right places at the right time.This is a nearly impossible task without markets and profits. This quotation best identifies the:A)  incentive problem under central planning.B)  coordination problem under central planning.C)  self-sufficiency dilemma under communism.D)  resource overcommitment problem under communism.

Donnie Sutton · Accepted Answer

Final Answer : B, Explanation :  The quotation specifically refers to the difficulty of coordinating production, distribution, and timing under central planning without the use of markets and profits. This reflects a coordination problem. The incentive problem refers to the issue of motivating individuals to work hard and innovate under a centrally planned system. The self-sufficiency dilemma refers to the challenge of maintaining economic independence, while the resource overcommitment problem refers to the issue of allocating resources efficiently in a centrally planned system. Neither of these issues is directly addressed in the quotation.

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