Question

1 A major political change in the former planned socialist economies has been a. the end of the political domination of Communist regimes. b. the strengthening of the Communist regimes in combination with economic decentralization. c. the full implementation of Western-style democracy. d. all of the above.

2.The modern approach to defining economic systems a. is based on the ”isms” of capitalism and socialism. b. emphasizes resource allocation arrangements over incentive systems. c. defines economic systems according to a number of characteristics. d. states that defining economic systems is impossible. e. none of the above.

3. The major attributes of an economic system are a. its population and capital resources. b. its level of GDP. c. its level of GDP per capita. d. its economic policies. e. none of the above.

4. One very important characteristic of organizations in the comparing of economic systems is a. the nature of economies of scale. b. whether they exhibit capitalism or socialism. c. the use of computers in the organization. d. the level of centralization or decentralization of decisions. e. none of the above.

Answer 1

Ans-1)(c) the strengthening of communist regimes in combination with economic decentralisation.

Reason-: Major political change in planned socialist countries never was able to completely overthrow the communist regime. Infact in countries like China , Cuba etc - the former planned socialist countries have a strong communist regime now. However , they have shifted somewhat to capitalism but still the resources are largely controlled by govt. They have just opted for decentralisation of economic activities. Such countries have never implemented western democracy in full manner.