Question

t/f why?

S150spl7h3ed Exam-Microsh word Layout Reterences Malings Reven Ves 33. Among the factors leading to the decline of the planned socialist economies are lack of technological progress, diminishing retuns to capital, inefficiency, problems with incentives, and the complexity of planning 34. Important differences among countries that have influenced the nature of economic transition include country size and location, extent of international trade, resource base, and length of time under socialism. 35. Every transition economy experienced the pattern of severe economic collapse and subsequent recovery. 36. Most economic transitions in recent years have involved the replacement of a command economy with a market economy 37. Liberalization is the reduction of state controls and the introduction of markets 38. Privatization has received major emphasis both in Eastern transition economies and in Western market economies. 40 Economists believe that differences in initial conditions, policy measures, and environmental factors are important deteminants of differences in economic 39. The "J curve" has been the dominant pattern of economic perfomance in transition economies.

Answer 1

33.

True

Reason: The mentioned issues led to decline of the socialist economies for more free market based economies

34.

True

Reason: These differences influence the type of economies and their transition process

35.

True

Reason: During the transition phase, an economy first collapses then recovers to a new one

36.

True

37.

True

38.

True

39.

True

Reason: It describes how a country’s BOT first worsens and then recovers during its transition phase

40.

Incomplete question