Country X Is in the Process of Transforming from a Command

question 86

Multiple Choice

Country X is in the process of transforming from a command economy to a market economy.This process most likely involves ________.

• A)standardized procedures implemented by the state
• B)high economic growth rates for the long term
• C)privatization of many factors of production
• D)violent political and legal upheaval

---

Definitions:

Market-Determined Price

A price outcome established through the interaction of supply and demand, without external controls.

Binding Price Ceiling

A maximum legal price set below the equilibrium price, leading to shortages as demand exceeds supply.

Equilibrium Level

A situation where the balance between the market's supply and demand stabilizes prices.

Increase Efficiency

The process of improving the effectiveness of an operation, system, or process by maximizing output with the minimal amount of input or effort.