ECO 250 Comparative Economic Systems Week 6 Homework Submission Answer

Week 6 Homework Submission: Chapter 10: Review Questions 7, 13, and 14
Review Questions 7: What are the three moral hazards caused by the separation of ownership and control? What abuses do they encourage?

Review Questions 13: How does China’s state management affect private demand? How does the derived demand for forced labor differ from ordinary derived demand?

Review Questions 14: Explain why Chinese enterprises do not profit maximize in the sense required by general competition.

Chapter 11: Review Questions 1, 2, and 4
Review Questions 1: To what extent does Russia still retain state ownership?

Review Questions 2: Neither Russia nor China operate under the rule of contract law, even though Russia’s communist party no longer rules. Why does not contract law prevail in Russia?

Review Questions 4: In what sense are Russia and China “Collectivist”?

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ECO 250 Comparative Economic Systems Week 6 Homework Submission Answer