Under the system there is very little incentive to work hard or to produce quality goods or services.

Communism is a type of political and social system. Under the Communism system, all the business has public ownership and the government has control over the businesses and the overall market. Due to the government regulation and rare private involvements under this system, there is a very little incentive to work or to produce quality goods and services.  

Hence the answer is Communism

The correct answer is:  communist.

Explanation:

In a communist economic system the government controls the finances of the country acting as the central planner, dictation production quotas and distribution levels, and setting prices. This system is typical of countries such as China, Vietnam, Cuba and North Korea. One of the main issues that face this type of economy is the incentive problem because, as all the power relies on the government in the decision-making process, individual planners find few to none opportunities to execute their ideas within the market.