Advocates of a Gradualism Transition Approach from Socialism to a Market

question 32

Multiple Choice

Advocates of a gradualism transition approach from socialism to a market economy recommend

• A) moderate changes starting with the development of market institutions, the gradual decontrol of prices, and the privatization of only the cost efficient firms.
• B) continued government controls over wages forever.
• C) an immediate and total change in all economic conditions.
• D) continued government controls over prices forever.

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Definitions:

Unearned Fees

Income received by a business for services that have yet to be performed or delivered, considered a liability until the service is completed.

Unearned Revenue

Money received by a company for goods or services that have yet to be provided to the customer.

Accrued Wages

Salaries or wages that have been earned by employees but have not yet been paid by the company.

Net Income

What a company ultimately earns in profit once expenses and taxes are removed from its total income.