Question 1

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 2

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

Accepted Answer

Former Yugoslavia generally had higher living standards compared to the Soviet Union, with a more open economy and greater consumer goods availability.

Question 3

The former Soviet Union was characterized by outdated technologies, prices set too low, and persistent shortages.

Accepted Answer

This was one of the main criticisms of the Soviet economic system, as central planning and government control led to inefficiencies and misallocation of resources.

Question 4

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

Accepted Answer

The Great Leap Forward was actually a disastrous economic and social campaign led by Mao Zedong from 1958 to 1962. It caused widespread famine, economic collapse, and social turmoil, resulting in millions of deaths and a setback for China's economy.

Question 5

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

Accepted Answer

After the collapse of the former Soviet Union, there was a rapid increase in prices in Russia, with some goods and services increasing by as much as 10 times their previous cost within a span of 6 months. This was due to the sudden shift towards a capitalist economy and the challenges of transitioning from a planned economy to a market-based one.

Question 6

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 government is a one-party socialist state with limited political freedoms and censorship. It is not considered a strong democracy.

Question 7

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

Accepted Answer

The Great Leap Forward, launched by Chinese Communist Party leader Mao Zedong in 1958, was intended to rapidly transform China's economy from agrarian to industrial. However, the imposition of unrealistic targets, the diversion of resources from agriculture to industry, and the disastrous implementation of the backyard steel production campaign led to a widespread famine and economic disaster. The Great Leap Forward resulted in a decline in agricultural productivity, food shortages, and millions of deaths from starvation. Thus, it was a great leap backward economically for China.

Question 8

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

There has been no modern example of transitioning from a socialist or communist economy to a market-based one, which makes it challenging for leaders in former Soviet economies.

Question 9

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

Although the Soviet Union was able to achieve significant gains in GDP, consumer demands were not always satisfactorily met due to shortages and inefficient distribution systems.

Question 10

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 "many economists predict that China will eventually become a market capitalist economy."

Question 11

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

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Question 12

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 been one of the fastest growing in the world during its economic transition to market capitalism.

Question 13

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 14

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

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Question 15

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 had significant pollution problems, particularly due to their emphasis on heavy industry and lack of environmental regulations.

Quiz 20: Socialist Economies in Transition