Question 6 / 15:  What is the incentive problem for workers under socialism?
Answer: 

If people are not paid in accordance with their productive

output—if they're paid according to "need"—then they might

not work as hard under socialism as they would under capitalism.

There would be fewer goods and services produced overall,

meaning that the average standard of living would have to fall.

Sample Partial Credit Answer

People would have no reason to work as hard.

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economics theory describes individual behavior as the result of a process of optimization under constraints the objective to be reached being determined by
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Economics is a branch of social science that deal with How to wise use of resource ,s
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need
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Economic Needs: In economics, needs are goods or services that are necessary for maintaining a certain standard of living. This includes things like healthcare, education, and transportation.
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Socialism: The Command Economy

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Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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