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Suppose that an individual sees a tremendous opportunity to produce and sell a new product but dismisses the idea because there is no way to exploit this opportunity for personal gain. This situation best identifies the:_________
a) coordination problem under communist central planning.
b) self-sufficiency dilemma under communism.
c) asymmetric information problem under communism.
d) incentive problem under communist central planning.

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Answer:

d) incentive problem under communist central planning.

Explanation:

Communist central planning is where the government controls all factors of production, and controls the economy .

On this kind of government citizens will not want to take advantage of opportunities because decisions concerning resource allocation is being taken by the government. There is no personal gain, all work is done for the government's gain.

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