In the former Soviet Union,producers were paid for meeting output targets,not for selling products.Under those circumstances,what were the economic incentives for producers?
A)to produce good quality products so that society would benefit from the resources used
B)to conserve on costs,so as to maintain efficiency in the economy
C)to produce enough to meet the output target,without regard for quality or cost
D)to produce those products that society desires most

Question

Quizplus · Accepted Answer

In the former Soviet Union, producers were paid for meeting output targets, regardless of whether they sold the products or not. Therefore, the economic incentive for producers was simply to produce enough to meet the output target set by the government, without regard for quality or cost. The focus was on meeting the target rather than producing something that would be in demand in the market, which resulted in inefficiency and poor-quality products.

In the Former Soviet Union,producers Were Paid for Meeting Output