Most authorities agree that the transition to a market economy can be achieved
A) without external financial and technical assistance.
B) only with forceful central planning by the government.
C) only with external financial and technical assistance.
D) only with government controls on wages and prices.

Question

Quizplus · Accepted Answer

External financial and technical assistance can provide the resources and knowledge necessary for successful economic reform and transition to a market economy. Without it, countries may struggle to overcome obstacles such as insufficient infrastructure, limited access to capital, and a lack of expertise in modern business practices. While government controls on wages and prices may be initially necessary, these should gradually be phased out as the economy stabilizes and businesses are able to operate more independently. Forceful central planning by the government has historically been associated with inefficient and ineffective economic policies.

Most Authorities Agree That the Transition to a Market Economy