The incentive problem under communist central planning refers to the idea that:

A) planners had to direct required inputs to each enterprise.
B) workers,managers,and entrepreneurs could not personally gain by responding to shortages or surpluses or by introducing new and improved products.
C) the immediate effect of more investment was less consumption.
D) exports had to be equal to imports for a central plan to work.

Incentive Problem

A situation where the economic incentives offered do not align with desirable outcomes, leading to inefficiency or undesired behavior.

Communist Central Planning

An economic system where the government makes all decisions regarding the production and distribution of goods and services.

Shortages

Situations where the demand for a product or service exceeds the available supply, often leading to waiting lists or increased prices.