7
AssignmentMultiple Choice

Trade Agreements

Question 7 • * HSA 26-27 Economics

Which factor places this nation in the transitioning category?

Answer
A
Multinational corporations operate within its borders.
B
It is shifting from a planned to a free-market economy.
C
It has recently increased trade with Western Europe.
D
It has a rising GDP.

Explanation

A transitioning economy is moving from a centrally planned system toward a market-based system. Therefore, the factor that places the nation in this category is that it is shifting from a planned to a free-market economy. The other factors can occur in many types of economies and do not define a transitioning economy.

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