Question

All of these are True or False question, please find full correct and precise answers with Gregory and Stuart, Comparing Economic System in the Twenty-First Century, 7th edition.

1.Classification criteria for economic systems include decision-making systems, mechanism for information and coordination, incentive structures, property tights and mechanism for public choices.

2.All economic systems can be classified as market capitalism or centrally planned socialism.

3.Generally speaking, transition economies emerging from the former Soviet Union have done least well with transition, while those of Central and Eastern Europe have done the best

4.Capitalism relies primarily on material incentives, while planned socialism and market socialism rely on both material and moral incentives.

5.Capitalism relies on a democratic process for public choice, whereas planned socialism refers on a dictatorial process

6.In addition to the economic system itself, environmental factors and polices also affect economic outcomes

7.Performance criteria used to evaluate economic outcomes include economic growth, income distribution (equality), economic efficiency, economic stability, and viability.

8.Growth of per capita GDP is most often used as a measure of economic growth, and inflation, and unemployment rates are most often used as measure of economic stability.

9. It is generally understood that capitalist are less efficient than are planned socialist economies.

10. Although future growth estimates for transition economies very widely, they are all positive and of a reasonable magnitude.

11.There is evidence that capitalist economies are more viable than are planned socialist economies.

12.During the twentieth century, there were examples of transitions from capitalism to planned socialism, from planned socialism to market Socialism, and from planed socialism to capitalism.

13 Economic transitions from planned socialism to market capitalism require a change in legal institutions, as well as in financial and economic institutions.

14.Capitalism is based on the foundation of private property ownership, economic freedom, and primacy of markets as the mechanism of economic coordination.

15.In their writings, Marx, Engels, and Lenin dealt with the fundamental questions of how scarce resources were to be allocated during the socialist phase.

16.The Austrian economists Mises and Hayek argued that rational economic decisions regarding resource allocation would be impossible because of the absence of market-determined prices.

17.The concept of material balances formulated by Soviet economists in the 1920s focused on the needs to determine and balance aggregate demand and supplies of basic industrial commodities without the use of markets.

18.The theory of planning stresses the formulation of a plan, but incentives often present the implementation of the plan.

19. Theoretically, one would expect more rapid economic growth, greater stability, greater efficiency, and a more equal distribution of income in planned socialism relatively than in market capitalism.

20.Market socialism is a system that combines social ownership of capital with market allocation.

21. The most famous theoretical model of market socialism is the trial and error model proposed by Oskar Lange.

22. Critics of  the Lange model point out problems with managerial incentives and monopoly behavior on the part of managers.

23. A labor-managed or participatory economy is based on the use of producers’ cooperatives

24. In  his 1944 book. The Road to Serfdom, F. A. Hayek argued that socialism (state ownership) and democracy were incompatible

25. In comparison to the Anglo-Saxon model of capitalism, the European model calls for more state intervention in economic affairs.

26. The Asian model of capitalism concentrates on high rates of capital formation, often supported by the state

27. Although the Four Tigers of Asia experienced more than three decades of very high economic growth, economists do not all agree that the ‘’Asian Miracle’’ will continue.

28. Studies indicate that the share of the private sector in U.S. economic activity has fallen steadily since 1939.

29 Unlike the case in Europe, in the U.S. more investment is financed by the issue of stocks and bonds than through bank financing

30. Studies indicate that the U.S. economy has become less competitive over time

31. A larger percentage of U.S. than European workers belong to labor unions, and U.S. unions have their own political party, in contrast to European unions.

32. One of the major Intellectual changes in the last decades of the twentieth-century is a rethinking of the role of the state in economic life.

33. In many ways, the European Union functions like the 50 states of the United States.

34 The US labor market is much less regulated than are European labor markets.

35. In Europe, nationalization and privatization tend to cycle with changes in government.

36. French indicative planning forced businesses to follow the national plan in order to meet the objectives of the state.

37. Although the US suffered increases in its unemployment and inflation rates between the 1960-1970 period, Germany and France lowered their rates between the two periods.

38. The "Swedish model" of providing maximum income security was a major factor causing Sweden's GDP per capita to increase relative to that of other European countries and the U.S. after the 1960s and 1970s

39. Although Japan, Taiwan, and Hong Kong followed the Asian model, Singapore and South Korea did not.

40. After World War 2, Japan's high rate of economic growth was largely the result of high rates of investments financed by high rates of national savings

41. Like the economic growth of Japan earlier, the high growth rates of the Four Tigers were led by high exports.

42 The World Bank classified Hong Kong, Singapore, and South Korea as the world's most outward-oriented economies over the 1963-1985 periods.

43 During the past twenty years, the most dramatic economic change has been the rise of Asia and the collapse of Soviet empire.

44. Asian cooperation tends to get their financing form banks that are closely related to the cooperation themselves.

45. Tenure at Japanese firms is longer than at U.S. firms.

Answer 1

1> True

Economic system is the system of production of goods, services, distributing income, allocating resources, it can be classified in various ways, some of them are there in the statement

2> False

There exists many hybrid economies which are a mix of socialist and capitalist policies.

3> False

Central and East European economies are not very prosperous, so they are certainly not the example to be followed.

4> True

Capitalism is based on people want more and more whereas that principle is not always true in socialism.