Which of the Following Statements Is True About the Former

question 30

Multiple Choice

Which of the following statements is true about the former communist nations of East Europe and central Asia?

• A) These countries show no commitment toward democratic and free-market policies.
• B) These countries have completely moved away from the unstable totalitarian and authoritarian form of government.
• C) These economies are yet essentially closed to Western international businesses.
• D) Businesses in these economies tend to be characterized by high risks as well as high returns.
• E) Compared to the rest of the world, the economies of many of the former Communist states are more developed.

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Definitions:

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of that good supplied by an industry at various price levels.

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter a market, including high costs, strict regulations, and established brand loyalty.

Market Price

The current price at which an asset or service can be bought or sold in the open market.

Price Discrimination

A pricing strategy where identical or substantially similar products or services are sold at different prices by the same provider in different markets.