Question

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? Select one: 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

Answer 1

Answer:

c. to produce enough to meet the output target, without regard for quality or cost

Explanation:

This method generates a lack of concers in the cost and innovations as it will be paid for the output regardless of the method and cost. The workers will focus to increase his productivity even if the cost increase more than the price of the product. This applied to the whole eocnomy will generate an inefficient assignation of resources which, will lead to deficit in the state.