Which system had goods produced for private businesses under prison supervision?

Which system had goods produced for private businesses under prison supervision?

• A. Public-account system
• B. Piece-price system
• C. State-use system
• D. Contract system

Answer: (B)

The main idea here is how prison labor is organized and who buys the goods. The piece-price system works by paying inmates a set amount for each unit they produce, and the output is produced under the prison’s supervision for private businesses. This arrangement keeps the prison in charge of the work environment and standards while supplying goods to private firms, aligning with the scenario described. In contrast, systems that route goods to government agencies or public use (state-use, public-account) involve public buyers rather than private businesses, and the contract system centers on a private firm paying for a production run under a contractual agreement rather than per-unit pay. The per-unit incentive structure of the piece-price model is what makes it the best fit for goods produced for private businesses under prison supervision.

The main idea here is how prison labor is organized and who buys the goods. The piece-price system works by paying inmates a set amount for each unit they produce, and the output is produced under the prison’s supervision for private businesses. This arrangement keeps the prison in charge of the work environment and standards while supplying goods to private firms, aligning with the scenario described.

In contrast, systems that route goods to government agencies or public use (state-use, public-account) involve public buyers rather than private businesses, and the contract system centers on a private firm paying for a production run under a contractual agreement rather than per-unit pay. The per-unit incentive structure of the piece-price model is what makes it the best fit for goods produced for private businesses under prison supervision.