Question

The present Chinese economy differs from its command economy. Which of the following point is true regarding this.

Options

• It made stagnancy of a command economy.

• The present Chinese economy established new trading laws and created Special Economic Zones.

• Command economy lagged behind industrial production but the Chinese economy recovered it through the privatization of agriculture and industry.

• Both The present Chinese economy established new trading laws and created Special Economic Zones and the Command economy lagged behind industrial production but the Chinese economy recovered it through the privatization of agriculture and industry.

Answer 1

Both The present Chinese economy established new trading laws and created Special Economic Zones and the Command economy lagged behind industrial production but the Chinese economy recovered it through the privatization of agriculture and industry.

Explanation:

The current Chinese economy has adopted an "open-door policy" in order to increase productivity through capital and technology investments. It was distinct from its command economy in the following ways:

1. It ended the stalemate of a command economy.
2. The command economy lagged behind industrial production, but the Chinese economy recovered by privatizing agriculture and industry.
3. The current Chinese economy established new trading laws and established Special Economic Zones, resulting in an increase in foreign trade. International trade was minimal during the Command economy, and per capita income was extremely low.