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Question
question 13
1 pts
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?
to produce enough to meet the output target, without regard for quality or cost.
to produce good quality products so that society would benefit from the resources used.
to produce those products that society desires most.
to conserve on costs, so as to maintain efficiency in the economy.
In the former Soviet Union's system, producers were compensated for meeting output targets, not for product quality, sales, or cost - efficiency. So their incentive was to meet the output target, and they had little reason to care about quality or cost. The other options (producing good - quality products for society's benefit, producing what society desires most, or conserving costs for economic efficiency) are not aligned with the incentive of meeting output targets alone.
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A. To produce enough to meet the output target, without regard for quality or cost.