8. The Yugoslav economy combines socialist and capitalist economic organization. Central planning directs the economy and channels
Question:
8. The Yugoslav economy combines socialist and capitalist economic organization.
Central planning directs the economy and channels capital investment into designed areas. However, business firms have a great deal of discretionary decision-making authority. Employees of each firm elect a workers' council, which manages the firm. The firm is usually free to decide what products it will produce, the production techniques to be utilized, the employment level, and even product prices. The profits of the firm are distributed to employees according to their wishes. Despite high rates of unemployment, the growth record of the Yugoslav economy has been impressive.
Step by Step Answer:
Economics Private And Public Choice
ISBN: 9780123110404
2nd Edition
Authors: James D Gwartney; Richard Stroup; A H Studenmund