The problems encountered by transitional economies trying to become well-functioning market economies involve:
A) introducing bank checking accounts.
B) taking steps to raise the inflation rate.
C) reducing private property rights.
D) eliminating all welfare programs and social safety nets.

Question

Quizplus · Accepted Answer

Introducing bank checking accounts is a necessary step for a market economy to function effectively, as it facilitates transactions and increases financial stability. The other options listed would hinder the transition to a well-functioning market economy. Raising inflation rates can lead to economic instability and reduced purchasing power, reducing private property rights would discourage investment and innovation, and eliminating welfare programs would increase poverty and social inequality.

The Problems Encountered by Transitional Economies Trying to Become Well-Functioning