Question 1

China has achieved high economic growth rates and a strong democracy with many freedoms.

Accepted Answer

China has achieved high economic growth rates, but its political system is often criticized for lack of political rights and freedom of expression.

Question 2

According to the text, China may very well become a market capitalist economy in the not-too-distant future.

Accepted Answer

The text states that "China’s economy may become a market capitalist economy, but it will take time and will have to overcome significant challenges."

Question 3

The economy of China has been very slow to grow during its economic transition to market capitalism.

Accepted Answer

The economy of China has actually grown rapidly during its economic transition to market capitalism, becoming one of the largest and fastest-growing economies in the world.

Question 4

Because of careful planning, the former Soviet Union was able to avoid the pollution problems so evident in capitalism.

Accepted Answer

This statement is false. The former Soviet Union actually had significant pollution problems, due in part to the emphasis on heavy industry and lack of environmental regulations enforced by the government.

Question 5

The Chinese economy was very successful in the Great Leap Forward.

Accepted Answer

The Great Leap Forward was a disastrous economic and social campaign launched by the Communist Party of China under the leadership of Mao Zedong from 1958 to 1962. The policies implemented during this period led to a collapse in agricultural production and caused widespread famine, resulting in the deaths of an estimated 20-45 million people. Therefore, it cannot be considered as a success for the Chinese economy.

Question 6

Discuss the relative successes and failures of Russia and China in their efforts to make the transition to market capitalism. Include in your answer an explanation of the different approaches and their different outcomes to date.

Accepted Answer

The answer of Discuss the relative successes and failures of...

Question 7

The economic performance of former Yugoslavia resulted in living standards lower than in the Soviet Union.

Accepted Answer

Former Yugoslavia, through its market-socialist economy, generally achieved higher living standards and economic development compared to the Soviet Union, which had a centrally planned economy.

Question 8

Write an essay on how the countries of the former Soviet Union might become successful in their efforts to make the transition to capitalism and the market system. Discuss what they must do and how they should do it.

Accepted Answer

The answer of Write an essay on how the countries...

Question 9

Describe the functioning of planning under Gosplan, the central planning agency in the former Soviet Union and the problems inherent in such a system

Accepted Answer

The answer of Describe the functioning of planning under Gosplan,...

Question 10

The former Soviet Union was able to achieve impressive gains in GDP and was able to satisfy consumer demands at the same time.

Accepted Answer

The former Soviet Union prioritized heavy industry and military spending over consumer goods, resulting in shortages and low living standards for citizens. While GDP did increase, it was not necessarily indicative of overall economic success or satisfaction of consumer demands.

Question 11

The leaders of the former Soviet economies have a difficult time before them in implementing transition in part because there is no historical precedent for them to follow.

Accepted Answer

This statement is true. The former Soviet economies had to transition from a centrally planned system to a market-based economy without any historical examples to follow. This made the process more challenging as they had to experiment and learn from their own mistakes.

Question 12

In the study of economics, free riders are defined as people or firms that consume a public good without paying for it. Given that definition, your study of command socialism, and in particular, your study of the former Soviet Union, evaluate and discuss in detail the following quote: "The collapse of the Soviet Union is an example, on a grand scale, of the logical outcome of the 'free-rider' problem."

Accepted Answer

The answer of In the study of economics, free riders...

Question 13

Prices in Russia soon after the collapse of the former Soviet Union increased by 10-fold in 6 months.

Accepted Answer

The prices in Russia did increase by 10-fold in 6 months after the collapse of the former Soviet Union due to the economic instability and changes in the currency.

Question 14

The former Soviet Union was characterized by outdated technologies, prices set too low, and persistent shortages.

Accepted Answer

This is a commonly accepted view of the Soviet economy during its existence.

Question 15

The Great Leap Forward was, in reality, a great leap backward economically for China.

Accepted Answer

The Great Leap Forward, an economic and social campaign launched by the Chinese Communist Party in 1958, ultimately resulted in food shortages, famine, and economic setbacks for China. It is estimated that tens of millions of people died as a result of the disastrous policies implemented during this time.

Quiz 34: Globalization and Protectionism