Advocates of a gradualism transition approach from socialism to a market economy recommend
A) moderate changes starting with the development of market institutions, the gradual decontrol of prices, and the privatization of only the cost efficient firms.
B) continued government controls over wages forever.
C) an immediate and total change in all economic conditions.
D) continued government controls over prices forever.

Question

Quizplus · Accepted Answer

Advocates of a gradualism transition approach recommend moderate changes to allow for the development of market institutions, gradual decontrol of prices, and the privatization of only cost-efficient firms. This approach is seen as more feasible and less disruptive than an immediate and total change in all economic conditions. Continued government controls over wages and prices forever would not be consistent with a market economy transition.

Advocates of a Gradualism Transition Approach from Socialism to a Market