ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are many important problems in the transition process from a planned to a market economy: change of the constitution and of political and social institutions, freeing of prices, privatization, establishing a banking system, fighting inflation and others.

Detailed explanation-2: -A transition economy or transitional economy is an economy which is changing from a centrally planned economy to a market economy. Transition economies undergo a set of structural transformations intended to develop market-based institutions.

Detailed explanation-3: -The USSR is the quintessential example of a centrally planned economy. A centrally planned economy or a command economy is one where the price and allocation of resources, goods and services is determined by the government rather than autonomous agents as it is in a free market economy.

Detailed explanation-4: -Introduction. Transitional economies are considered to be countries which are undertaking macroeconomic reforms in an attempt to alter the ways in which their economies are managed. Traditionally it implies that the country is making a structural adjustment from a state-run economy toward a more market-led system.

Detailed explanation-5: -A capitalist economy is a type of free market economy; the profit motive drives all commerce and forces businesses to operate as efficiently as possible to avoid losing market share to competitors.