Advising New Government Leaders Suppose that a country experiences a change in government…

Advising New Government Leaders Suppose that a country experiences a change in government leadership. Prior to this change, the country had a centrally planned economy. The new leaders are willing to try a different system if they can be can be convinced that it will yield better results. They hire an economist from a country with a market economy to advise them and will order their citizens to follow the economists recommendations for change. The economist suggests that a market economy replace central planning to answer the nations economic questions (what, how, and who?).c Answer the following questions: Are there reasons why the leaders of this country might not accept the economists suggestions? Briefly explain. (13 marks)
Solution Preview:

Advising New Government Leaders Suppose that a country experiences a change in government leadership. Prior to this change, the country had a centrally planned economy. The new leaders are willing to try a different system if they can be can be convinced that it will yield better results. They hire an economist from a country with a market economy to advise them and will order their citizens to follow the economists recommendations for change. The economist suggests that a market economy replace central planning to answer the nations economic questions (what, how, and who?).c Answer the following questions: Are there reasons why the leaders of this country might not accept the economists suggestions? Briefly explain. (13 marks)

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top