Chapter 19.4, Problem 3R

To determine

To evaluate: The major problems that china is facing in its move towards capitalism.

Explanation of Solution

Problem	Cause	Effect
Lack of property rights	Gradually china is becoming a nation of laws. The notion of property is slow to be accepted because of communist dogma has for decades criticized private property.	Corruption: because army and government officials still control many resources.
Pollution	China is the world’s second biggest producer of undesirable gas emissions into the atmosphere.	Adverse effect on heath and also the natural environment. Acid rain affects a third of the country.

Economics Concept Introduction

Introduction: Capitalism is an economic structure in which capital resources belong to private individuals or firms. In the general market, the development of products and services is focused on quantity supplying and demanded known as a market economy rather than by central planning known as an economy with command characteristic.