Since the fall of the Soviet Union in the early 1990s a
[blank] economy has been replaced with a
[blank] economy across
eastern Europe. As a result, Eastern Europe has developed industrially slower than Western Europe

Fill in the blanks.

A) Capitalist; Command
B) Democracy; Capitalist
C) Command; Capitalist
D) Communist; Command

Answer:

C) Command; Capitalist

Explanation:

The Soviet Union started incorporating the "command economy" in 1924 under Joseph Stalin. Such movement was meant to overtake the economy in the West. The Communist Party controlled everything from social, political and economic aspect of the country. This led to an immediate rapid growth.

However, the command economy's long-term inefficiency soon emerged and this made the Soviet's economy stagnant. It collapsed in 1991.

Eastern Europe embraced the "capitalist economy" after the communist era. This led to the removal of price controls, which meant the prices of goods depended on supply and demand. Many of the countries resorted to speedy reform, which largely affected several countries' industrialization.

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