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Coordination Problems Have Led to the Failure of Command Systems

Question 5

Multiple Choice

Coordination problems have led to the failure of command systems. Which of the following best exemplifies this problem?


A) Managers had no incentive to address market surpluses or shortages, as long as they met production goals.
B) Workers were not motivated to work hard because of a lack of consumer goods to purchase.
C) Command economies try to minimize the use of capital goods, making production less efficient.
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.

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