Question

following statement is F/F

1. Between 1921 and 1928; the New Economy Policy allowed markets to help economic recovery in the USSR. 2. The administrative-command economy was the mechanism for resource allocation in the former USSR between 1992 and WOLRD WAR II, but was abandoned in 1946. 3. Although the Soviet Union was a large country with a large population, it had few natural resources. 4. Although the USSR had an elected government, the decision-making authority in the economy was centered in the Communist Party of the Soviet Union. 5. The economic planning agency in the USSR was Gosplan. 6. In practice, the planning process in the Soviet Union was so effective that the optimal plan was always chosen from among the set of consistent plans 7. In the Soviet model of centralized socialism, a principal-agent problem was created by the information asymmetry that existed between enterprise managers and their superiors. 12. In the soviet Union, the second economy was an unplanned and illegal part of economic activity. 13. The two major institutions of Soviet agriculture after 1928 were the Kolkhoz and the sovkhoz 14. China is the world's most populous country, with about.3billion citizens. 15. Although the Chinese economy resembled the adminstrative-command economy of the USSR prior to 1970, it now resembles market socialism. 16. Both China and the Soviet Union suffered substantial destruction of animals, facilities, and equipment during the process of agriculture collectivization. 17. The Great Leap Forward and the Cultural Revolution both caused interruption of economic growth in China.

following statement is T/F

e Mg 43. Other things being equal, transition economies with initial conditions more similar to market economies have had higher rates of economic growth during the transition 44 Other things being equal, economic growth of transition economies is directly related to the degree of liberalization 45 Poland used the "gradualist approach" to economie transition 46. The Washington consensus was the basis for the big push approach transition 47 An example of sequencing is the establishment of a central monetary authority before privatization of banks takes place 48. In the study of economic transition, complementarities refers to the notion that some elements of transition must be implemented simultaneously 49. The evolutionary approach to economic transition is based on traditional neoclassical economic theory 50, In the evolutionary approach to economic transition, organizational change is assumed to be simple and rapid to economic S150sp17k3rd Exam Mcreseft Word Home Page Layout Insert Malings References Review View 33. Among the factors leading to the decline of the planned socialist economies are lack of technological progress, diminishing returns to capital, inefficiency, problems with incentives, and the complexity of planning 34. Important differences among countries that have influenced the nature of economic transition include country size and location, extent of international trade, resource base, and length of time under socialism. 35. Every transition economy experienced the pattern of severe economic collapse and subsequent recovery 36. Most economic transitions in recent years have involved the replacement of a command economy with a market economy 37. Liberalization is the reduction of state controls and the introduction of markets 38. Privatization has received major emphasis both in Eastern transition economies and in Western market economies 39. The "J curve" has been the dominant pattern of economic performance in transition economies 40. Economists believe that differences in initial conditions, policy measures, and environmental factors are important determinants of differences in economic performance among transition economies Eam Mcrosolt Word neln ade References Malings Review View economies at the same level of economic development 28. Between 1960 and 1990, planned socialist economies showed higher rates of productivity growth than did capitalist economies 29. The major difference in the distribution of income in planned socialist and capitalist economies is due to the absence of private ownership of income-producing property under socialism. 30. In general, countries with higher levels of economic development have lower levels of inequality in the distribution of income, other things equal 31. Frederic Pryor found that economic fluctuations in planned socialist economies were significantly less pronounced than in capitalist economies 32. Differences in inflation rates between socialist and capitalist economies are relatively small Viee 17. The Great Lenp Forward and the Cultural Revolution both caused interruption of economic growth in China 18. The economic reforms introduced in China by Deng Xiaoping were preceded by political and social liberalization 19. The contract responsibility system introduced in China in the late 1970s effectively brought collectivization to an end 20, During the past twenty years, privatization has been extended to small and medium- seale industry in China, but large-scale enterprises remain under state ownership 21. China's trade proportion (exports plus imports as a percent of GDP) is larger than that of the United States 22. Although Russia has been admitted to the World Trade Organization, China has not 23. Since 1980, China's rate of economic growth has been among the highest in the world 24. China was able to finance about 40% of its capital formation in the 1990s with foreign direct investment 25. Comparisons of growth mtes between Western and Eastern countries are quite I accurate because all countries use the same set of national income accounting procedures 26. In the socialist industrialization model, emphasis was placed on the growth of heavy industry and on agricultural self-sufficiency 27. Between 1950 and 1990, socialist economies grew more rapidly than did capitalist economies at the same level of economic development. a10%O Pet0w1 00 PM e

Answer 1

AN. 1) given statement is true. reason: the economic policies between 1921-1928 helped USSR to recover it's economy.so it is true. 2)given statement is false reason: The administrative command economy was the mechanism for resource allocation between 1922 and world war 2, this statement is not true, as during this time a policy of mixed economy waw taken place. Mixed economy is that where small businesses were run independently and big banks and government organisations were under the control of the government 3) given statement is false. reason: Soviet Union is a large country and it has abundant natural resources as well. Oil, coal, natural gas, iron ore, timber, etc are all found in the USSR. Hence, the mentioned statement is false. 4)given statement is false. reason: The government of the Soviet Union was an elected body but the decision making body was the government and not the Communist party of the Soviet Union 5) given statement is true. reason The planning agency of USSR was gosplan. Hence, this statement is true.

6) given statement is false. reason: This statement is not true. Many plans were chalked out at different years to make the plans effective. 7) given statement is true reason: This statement is true that in the Soviet model of centralised planning a problem of principal agent was created due to information asymmetry. V 12)given statement is true reason: Here, this statement is true. In the Soviet Union, this second economy or the shadow economy was an illegal activity which took place due to the inefficiency of the policies of the government. 14)given statement is true reason: It's true China is the world's most populous country. However, the population is only 1.3 billion 15)given statement is true reason:This statement is true that China started its communist economy in as an administrative command economy, nhit now it has adapted the market socialism 17)given statement is true

reason: This statement is true that both the Great Leap Forward and the Cultural Revolution caused interruption of economic growth in China.