Question

Answer True or False:

1. Classification criteria for economic system include decision-making systems, mechanisms for information and coordination, incentive structures, property rights, and mechanisms 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 relies on a dictatorial process.

6. In additions 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 (equity), economic efficiency, economic stability, and viability.

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

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

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

11. There is no evidence that capitalist economies are more viable than are planned socialist economies.

12. During the twentieth century, there were examples of transition from capital-ism to planned socialism, from planned socialism to market socialism, and from planned socialism to capitalism.

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

14. Capitalism is based on the foundation of private property ownership, econom-ic freedom, and the primacy of markets as the mechanism of economic coor-dination.

15. In their writings, Marx, Engels, and Lenin dealt with the fundamental question 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 need 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 prevent the implementation of the plan.

19. Theoretically, one would expect more rapid economic growth, greater stabil-ity, greater efficiency, and a more equal distribution of income in planned rel-ative to 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 Osker Lange.

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

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

24. In the 1994 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 becomes 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 Europeanunions.

32. One of the major intellectual changes in the last decades of the … country 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 State.

34. The U.S. labor market is much less regulated than are European labor mar-kets.

35. In Europe nationalization and privatization 10 to cycle with changes in gov-ernment.

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

37. Although the U.S. suffered increases in the unemployment and inflation rates between the 1960 - 1970 period, Germany and France lower the rate between the two periods.

38. The "Swedish model" of providing maximum income security was a major Factor in 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, I won, and Hong Kong followed the Asian model, Singapore and South Korea did not.

40. After World War II, Japan's high rate of economic growth was largely the re-sult of high rates of investment financed by high rates of national Savings.

Answer 1

ANSWER: AS YOUR REQURMENT THE ANSWER IS ONLY TRUE/ FALSE NOT EXPLANATION AND ALSO HIGH VOLUME OF QUESTION 40.

1. TRUE.

2.TRUE.

3.TRUE.

4.TRUE.

5.FALSE.

6.TRUE.

7.FALSE.

8. TRUE.

9.FALSE.

10.TRUE.

11.FALSE.

12.FALSE. market socialism not move to capitalization.

13.FALSE

14.TRUE.

15. TRUE.

16.TRUE.

17.TRUE.

18.TRUE.

19.TRUE.

20.TRUE.

21.TRUE.

22.TRUE.

23.TRUE.

24.TRUE.

25.FALSE.

26.TRUE.

27.TRUE.

28.FALSE.

29.FALSE.

30.TRUE.

31.FALSE.

32.TRUE.

33.FALSE.

34.TRUE.

35.TRUE.

36.TRUE.

37.TRUE.

38.TRUE.

39.TRUE.

40.TRUE.