Many Economies in Central and Eastern Europe,including the Countries of the Former

question 41

Multiple Choice

Many economies in central and Eastern Europe,including the countries of the former Soviet Union,are still in the process of moving from a command economy to a market economy.In the first years of this transition,most of these countries experienced sharp drops in output and reductions in living standards.Economists generally see this as

• A)the failure of the market system.
• B)the triumph of capitalism over communism.
• C)an indication of the extreme difficulty of transition from one type of economic system to another.
• D)an indication that these economies should return to being command economies.
• E)the difficulty of corruption in non-market economies.

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Definitions:

Myths

Traditional stories, typically involving supernatural beings or events, that serve to explain a natural or social phenomenon, or cultural beliefs.

Realities

The state of things as they actually exist, as opposed to how they may appear or might be imagined.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and running a new business venture.

Value Creation

The process of enhancing or producing goods, services, or ideas that have a higher worth to customers or stakeholders than the original cost of inputs.