Answer to Question #236102 in Economics for bellatrix

Question

Discuss whether the transition of an economy from one that is centrally planned to one in

which resources are allocated through the free market is likely to be of overall benefit to the

citizens of that economy.

Answer 1

The transition of an economy from one that is centrally planned to one in which resources are allocated through the free market eventually will definitively give more economic freedom to the citizens. However, the way towards this transformation will be full of economic shocks and imbalances.