Question

Which of the following statements about “Shock Therapy” is false?

• A. Shock therapy was adopted in 1990.
• B. Shock therapy had a good impact on economies.
• C. The process of shock therapy began after the fall of the communist system.
• D. Treatment by delivering blood is called shock therapy.

Hint:

Shock Therapy involved:
• Privatization of state-owned industries
• Free-market reforms
• Removal of price controls
• Opening economies to global trade Consequences: \[ \boxed{\text{Unemployment}} \] \[ \boxed{\text{Inflation}} \] \[ \boxed{\text{Economic hardship}} \] Remember: \[ \boxed{\text{Shock Therapy } \neq \text{ Economic Success}} \] This is a frequently asked CUET question from The End of Bipolarity.

Answer 1

The Correct Option is B

Step 1: Recall the meaning of Shock Therapy. Shock Therapy refers to the rapid transition from a socialist economy to a market economy in the former Soviet Union and East European countries after the collapse of communism.

Step 2: Understand when it was introduced. The policy was introduced around: \[ \boxed{1990} \] and gained momentum after the disintegration of the Soviet system. Thus, \[ \boxed{\text{Statements (A) and (C) are Correct}} \]

Step 3: Assess its impact. NCERT notes that Shock Therapy resulted in:
• Economic decline in many regions
• Rise in unemployment
• Inflation
• Increase in poverty and inequality Therefore, it did not have an overall good impact on the economies concerned. \[ \boxed{\text{Statement (B) is False}} \]

Step 4: Select the false statement. Among the given options, the incorrect statement is: \[ \boxed{\text{Shock therapy had a good impact on economies}} \] Hence, the correct answer is: \[ \boxed{\text{(B)}} \]