The Transition to a Market-Oriented Economy Characterized by Rising Unemployment

question 101

Multiple Choice

The transition to a market-oriented economy characterized by rising unemployment and higher prices suggests that

• A) government must continue to centrally plan all resource allocations to production.
• B) a social safety net including unemployment compensation, and food, clothing, and housing subsidies for those in need will be politically popular.
• C) government must set wages, prices, and interest rates.
• D) government must continue to centrally plan the distribution of all output into consumption.

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Definitions:

External Adaptation

The process by which organizations or individuals adjust and respond to changes in the external environment to survive and thrive.

Entrepreneurial Cultures

Organizational environments that promote innovation, risk-taking, and proactive pursuit of opportunities.

Mid-Sized Companies

Businesses that occupy the middle ground in terms of their revenue, number of employees, and overall market presence, between small and large companies.

Clan Culture

An organizational culture characterized by a family-like atmosphere, where loyalty, tradition, and personal commitment are valued.