Question

1. After a decade of transition, initial conditions

a. have little importance in contemporary assessment of transition economies.

b. continue to be an important aspect of analyzing economic transition.

c. are of greater importance in CIS countries than Eastern European countries.

d. a and c are correct.

e. b and c are correct.

2. Investment as a share of GDP is

a. higher in market economies than command economies.

b. higher in command economies than market economies.

c. the same in market and command economies.

d. equal to industrial output in command economies.

e. not relevant; there is no information on investment activities in command economies.

3. Which of the following is an example of economic distortions?

a. Deviations from market patterns of resource allocation.

b. Regional preferences for resource allocation.

c. Biases in favor of industry.

d. Artificially high levels of employment.

e. All are examples of distortions.

4. Investment as a share of GDP is

a. higher in market economies than command economies.

b. higher in command economies than market economies.

c. the same in market and command economies.

d. equal to industrial output in command economies.

e. not relevant; there is no information on investment activities in command economies.

Answer 1

1). The correct option is is (d).

B and C are the correct options.

2). The correct option is (b).

b. higher in command economies than market economies.

investment share in GDP are usually included in government policy as a basis for budget funding programmes and for priority-setting exercises. measures of economic development, such as GDP per capita and capital labor ratio. ... percentage of gross domestic product at purchasers' prices.

3). The correct option is (d).

All are examples of distortions.

4.) It is same as question number 2( two). Kindly refer to q.no 2.

Thanks

Kindly comment for further explanation.