China used dual-track pricing, not shock therapy. Which outcome best fits this choice?
- Mass factories closed quickly
- Wages fell, goods vanished
- Output held, corruption grew (correct answer)
- Firms privatized overnight
Explanation: Dual-track pricing kept the state plan running while allowing market sales, so production did not collapse; instead, officials and insiders arbitraged the price gap, feeding corruption. The tempting wrong answer is that firms privatized overnight, which describes shock therapy, not China's gradual dual-track approach.