Title: Cat for Lesson 6 - The Former Socialist Countries of Eur
Course: 383-303-FD-55-01 • International Economics

Test info catégorie

Q: Question

Between 1951 and 1986, socialist economies showed the symptoms of an impending crisis.

Considering this claim, indicate whether each of the following statements is true or false.

Sélectionnez la bonne réponse pour chaque énoncé.

The growth rate for the countries' net material product was declining.
[...] Gross investments were insufficient.
[...] The steps toward integrating the goods and services trade in Europe occurred in the following order: customs union, Common Market, single market.[...] Productivity of labour was poor.
[...] Agriculture was the sector that lagged the most.
[...] Services were poor.[...]
A: Vrai; Faux; Vrai; Vrai; Faux; Vrai
Gap 1 offers: Vrai; Faux
Gap 2 offers: Vrai; Faux
Gap 3 offers: Vrai; Faux
Gap 4 offers: Vrai; Faux
Gap 5 offers: Vrai; Faux
Gap 6 offers: Vrai; Faux

Question

Explain what is meant by "extensive planning" and give an example.

Entrez votre réponse ci-dessous.
Feedback: Planning is extensive when the main objective is to produce the pre-established "quantity" of products, regardless of various production factors used to achieve it. Production factors are not used economically, and the goal is to produce what the plan dictates, even if the quality of the goods is poor and productivity is inefficient. For example, out of 176 photocopiers produced in January 1987 in the only Soviet factory that made this product, only two worked. At the farm machine factory in Tyumen, half of the production was sub-standard.
Feedback: Planning is extensive when the main objective is to produce the pre-established "quantity" of products, regardless of various production factors used to achieve it. Production factors are not used economically, and the goal is to produce what the plan dictates, even if the quality of the goods is poor and productivity is inefficient. For example, out of 176 photocopiers produced in January 1987 in the only Soviet factory that made this product, only two worked. At the farm machine factory in Tyumen, half of the production was sub-standard.

Question

Specify four important items that illustrate the economic reforms in the former USSR since 1985.

Entrez votre réponse ci-dessous.
Feedback: Any of the following four statements may be mentioned. - Businesses are given more freedom. The goal is self-management and self-financing. - Businesses should operate based on "profit." - Farmers are given accountability to encourage them to produce more. They are allowed to rent land they can work on over the long term. - The creation of individual companies in the service sector is allowed (previously, there were very few). - Prices are liberalized. Previously, the government regulated the price of goods. Now the government wants prices to follow marketplace rules, that is, the rule of supply and demand. - Currency becomes "convertible," that is, it can be easily bought and sold on international money markets. - Companies that once belonged to the government are privatized. - People must change their mentality in order to actively participate in the market economy. Some manage to do so more easily than others.
Feedback: Any of the following four statements may be mentioned. - Businesses are given more freedom. The goal is self-management and self-financing. - Businesses should operate based on "profit." - Farmers are given accountability to encourage them to produce more. They are allowed to rent land they can work on over the long term. - The creation of individual companies in the service sector is allowed (previously, there were very few). - Prices are liberalized. Previously, the government regulated the price of goods. Now the government wants prices to follow marketplace rules, that is, the rule of supply and demand. - Currency becomes "convertible," that is, it can be easily bought and sold on international money markets. - Companies that once belonged to the government are privatized. - People must change their mentality in order to actively participate in the market economy. Some manage to do so more easily than others.

Question

List three negative effects that resulted from implementing unpopular reforms.

Entrez votre réponse ci-dessous.
Feedback: Three of the following effects may be mentioned. - Inflation. Following the reform of the price system, inflation rates were very high. The people lost some of their purchasing power. - Unemployment. At one time, work was a "right," that is, everyone had the right to a job. Today, with the closure of inefficient factories, many workers find themselves jobless. - Increasing income disparity. The income of civil servants, retirees and public sector employees did not increase in step with price increases. However, a class of clever, enterprising people had arisen, and these people were sometimes very well paid. Added to that was the income from unofficial sectors. Not everyone benefited from the same advantages or opportunities. - Presence of the mafia. The mafia was very present and well organized. It often dictated its own laws, and the government could not effectively control it.
Feedback: Three of the following effects may be mentioned. - Inflation. Following the reform of the price system, inflation rates were very high. The people lost some of their purchasing power. - Unemployment. At one time, work was a "right," that is, everyone had the right to a job. Today, with the closure of inefficient factories, many workers find themselves jobless. - Increasing income disparity. The income of civil servants, retirees and public sector employees did not increase in step with price increases. However, a class of clever, enterprising people had arisen, and these people were sometimes very well paid. Added to that was the income from unofficial sectors. Not everyone benefited from the same advantages or opportunities. - Presence of the mafia. The mafia was very present and well organized. It often dictated its own laws, and the government could not effectively control it.