Question

Which one of the following is NOT a consequence of ‘Shock Therapy’?

• A. The value of the Rouble declined.
• B. The economy of the entire region was ruined.
• C. The system of social welfare got strengthened.
• D. The collective farm system disintegrated.

Hint:

Shock Therapy led to rapid privatization, economic instability, decline of welfare systems, and collapse of collective farming.

Answer 1

The Correct Option is C

Step 1: Understand Shock Therapy
Shock Therapy refers to the rapid transition from a socialist economy to a capitalist market economy in the former Soviet Union and Eastern European countries during the 1990s. Step 2: Effects
- The value of the rouble declined sharply ✔
- The regional economy experienced severe crisis and instability ✔
- The collective farming system collapsed ✔
- Social welfare systems weakened rather than strengthened ✔ Step 3: Identify incorrect statement
Option (C) states that the system of social welfare got strengthened, which is incorrect because social welfare provisions actually declined. Final Answer:(C)