ECONOMICS---- How might these different systems affect work effort?

[E.F]

Markets Reward Individuals According To Their Output

Communism Rewards People According To Their Needs.

Thanks

[RAWRitsanONION]

Well, if more output creates a larger reward for individuals, they will begin to work harder because they are greedy (maximization) and try to obtain as many rewards as they can. It kind of also depends on effort for the reward, remember costs do not only include payload (that is historical cost), it is opportunity costs. If the extra effort in producing more output is less of a cost then the gain that the people receive from the reward, they will increase they effort to reach an equilibrium. However, it will not affect them if the extra effort will be a greater cost then the rewards.

Communism will decrease work effort because everyone will be receiving what they NEED as opposed to fighting to get what they want.