Mikhail Gorbachev's term perestroika referred to restructuring.
Indicate whether this statement is true or false.
Q. 2Economists suggest that non-democratic governments hinder economic development as ________.
A. the leaders are answerable to the general public and fear political consequences
B. the insulation of the leaders from the general public reduces accountability and
increases corruption
C. the governments are relatively more insulated from demands of interest groups,
lobbies, and the private sector
D. the leaders have limited ability to radically alter the structure of property relations
E. the general public has the right to demand resources from the state
Q. 3________ is an ideology that strongly favors minimal state involvement in the economy as the best strategy for growth.
A. Interventionist development
B. Command economy
C. State-led development
D. Planned economy
E. Economic liberalism
Q. 4The term used for the minority faction of the Russian Social Democratic Party in 1903 was Bolshevik.
Indicate whether this statement is true or false.
Q. 5Which of the following arguments suggests that democracy promotes economic development better than non-democracy?
A. The leaders in a democracy are more likely to engage in corruption and make inefficient economic decisions due to lack of competition and fear of political consequences.
B. Democratic leaders tend to be benevolent and public-minded as they have absolute and permanent political power.
C. Democratic governments are more insulated from the demands of political parties, interest groups, and lobbies.
D. Democracies are better at protecting individual property rights compared to non-democracies.
E. Democracies are more insulated from political lobbies than non-democracies and hence can make better investment decisions with no crowding out of the private sector.
Q. 6The Communist Party of the Soviet Union became the Russian Communist Party and continues to dominate Russian Politics.
Indicate whether this statement is true or false.
Q. 7An interventionist state in which the central government controls and coordinates virtually all economic activity is called a ________.
A. free-market system
B. liberal state
C. command economy
D. laissez faire
E. capitalist state
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