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The incentive problem in the centrally planned economies refers to the idea that Multiple Choice the numerical production targets set by central planning boards caused
The incentive problem in the centrally planned economies refers to the idea that
Multiple Choice
the numerical production targets set by central planning boards caused managers to produce substandard or unwanted output.
managers were incentivized to change the production targets if conditions warranted it
managers were not rewarded for meeting their assigned production quantities.
there were never any sales so consumers were never motivated to buy extra items.
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