The immediate and total deregulation of prices, liberalization of trade, privatization, and development of financial institutions represent
A) the gradualism transition approach from socialism to a market economy.
B) a cooperative socialist model.
C) the shock therapy transition approach from socialism to a market economy.
D) an authoritarian socialist model.

Question

Quizplus · Accepted Answer

The immediate and total deregulation of prices, liberalization of trade, privatization, and development of financial institutions are characteristics of the shock therapy transition approach from socialism to a market economy. This approach involves rapidly implementing market-oriented policies to transition from a planned economy to a market economy. This approach was implemented in countries such as Russia and Poland in the 1990s.

The Immediate and Total Deregulation of Prices, Liberalization of Trade