Practise comparing market, planned and mixed systems through ownership, incentives, prices and government decisions, then evaluate efficiency, equity and consumer outcomes.
Eastern European nations have changed from planned to market economies.
Which policy was least likely to have been adopted?
allowing prices to fluctuate
keeping established economic organisations
privatising essential industries
permitting changes in the money supply
B
What is least likely to increase as a result of a transition from a planned economy to a free market economy?
prices of goods and services
privately owned resources
provision of merit goods
structural unemployment
C
The transition of centrally planned economies to market economies was accompanied by a significant change in the composition of output.
What was an immediate consequence of this transition?
a build-up of unsold stocks of goods
an increase in exports of goods
an increase in unemployment
decreasing prices of goods and services
C