Coordination problems have led to the failure of command systems. Which of the following best exemplifies this problem?
A. Command economies try to minimize the use of capital goods, making production less efficient.
B. Managers had no incentive to address market surpluses or shortages, as long as they met production goals.
C. Workers were not motivated to work hard because of a lack of consumer goods to purchase.
D. The complexity of production processes made it difficult to assure that all necessary inputs were provided at the right time and in the right amount.
Answer: D
You might also like to view...
According to the horizontal-equity principle of taxation
A) individuals who receive the benefits of a good or service should bear a greater share of the tax burden. B) people in the same economic situation should be treated equally. C) individuals who are willing to bear a greater share of the tax burden should be compensated with non-monetary benefits. D) individuals who are most able to pay should bear a greater share of the tax burden.
Country A's overall balance in the balance of payments equals:
a. Current account minus the financial account. b. Reserves account minus the current account. c. Reserves account plus the capital account plus the current account. d. Current account plus capital account plus the financial account minus the reserves account. e. Reserves account plus the financial account.