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)an indication of the extreme difficulty of transition from one type of economic system to another.
B)the failure of the market system.
C)the difficulty of corruption in non- market economies.
D)the triumph of capitalism over communism.
E)an indication that these economies should return to being command 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 in central and Eastern Europe, including the countries of the former Soviet Union, are generally seen as an indication of the extreme difficulty of transitioning from one type of economic system to another. This difficulty is due to the significant differences in the underlying principles of these systems, as well as the challenges of creating the necessary institutions, policies, and regulatory frameworks to support a functioning market economy.

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