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.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

Question Posted: