Many economies in central and Eastern Europe,including the countries of the former Soviet Union,are still in the process of moving from a command economy to a market economy.In the first years of this transition,most of these countries experienced sharp drops in output and reductions in living standards.Economists generally see this as
A)the failure of the market system.
B)the triumph of capitalism over communism.
C)an indication of the extreme difficulty of transition from one type of economic system to another.
D)an indication that these economies should return to being command economies.
E)the difficulty of corruption in non-market economies.

Question

Quizplus · Accepted Answer

The sharp drops in output and reductions in living standards during the transition from a command economy to a market economy indicate the extreme difficulty of transitioning from one type of economic system to another. It does not necessarily suggest the failure of the market system or that these economies should return to being command economies. Corruption may also be a challenge, but it is not the only factor influencing the transition process.

Many Economies in Central and Eastern Europe,including the Countries of the Former