The transition of the former communist countries to market economies requires:
A) Implementation of governmental price controls
B) Privatization of public property
C) Transforming competitive industries into monopolies
D) The sale of private industries to the government

Question

Quizplus · Accepted Answer

The privatization of public property is necessary for the transition to market economies as it allows for the transfer of ownership from the state to private individuals or companies, allowing for competition and market forces to drive economic growth. Implementation of governmental price controls (A) and transforming competitive industries into monopolies (C) go against the principles of market economies and can lead to inefficiencies and reduced competition. The sale of private industries to the government (D) also goes against the transition to market economies.

The Transition of the Former Communist Countries to Market Economies