Which of the following occurs when an economy makes the transition to capitalism from communism?

a. hyperinflation

c. privatization

b. progressive tax rate

d. lack of incentives

The correct answer is letter A. Privatization. When an economy makes the transition from communism to capitalism, then there's a privatization. From the scenario of having common goods from each other, then going to capitalism (an economic system that is based on private ownership of the production and operation for profit), then privatization will surely happen.

The correct answer is letter B. The shift of an economy from capitalism to communism would yield to a progressive tax rate. In a communist type of government, businesses are bound to adhere to the demands of the government. Often, businesses in the communist economy are also businesses put up and managed by government people.