Author Question: When nations attempt to move quickly from central planning to a market system, they face the ... (Read 164 times)

jCorn1234 · **on:** Jun 29, 2018

When nations attempt to move quickly from central planning to a market system, they face the obstacle of high transaction costs in large part because

A) market systems are unnatural and require careful design.
B) people who have lived under socialism lack the basic skills a market system requires.
C) people who have long lived under socialism are not sufficiently individualistic.
D) the experience of socialism makes people distrustful of one another.
E) they lack many of the institutions that develop over time in a market system.

Question 2

In the U.S. economy, which of the following statements is TRUE?

A) More goods are produced than services.
B) More services are produced than goods.
C) Production is divided evenly between goods and services.
D) The economy is too complex to determine the proportion of production that is devoted to producing services.