Question

1. How would you classify the Soviet economy prior to the break-up of the Soviet Union? Explain your rationale.

2. Why did the Soviet economy fail?

3. How would you classify the Russian economy as it is currently?

4. Is it still a transitional economy, how so?

Answer 1

Answer 1;

Prior to the break up of the Soviet Union, the economy of the Soviet Union was based on the system of state ownership of the means of production, collective farming, industrial manufacturing and centralized administrative planning. There was public ownership of industrial assets, thre investment was controlled by the state. Moreover, there was macro economic stability, negligible unemployment in the economy and there was also high job security in the economy of Soviet Union. The economy had evolved from aminly being an agrarian economy to an industrial economy.