What term refers to when a country's economic system is moving from one type to another?

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The term "Transitional Economic System" accurately describes a situation in which a country's economic framework is shifting from one type to another. This often occurs in countries moving from a centrally planned economy, such as socialism or communism, towards a market-driven economy. During this transition phase, numerous changes happen, including adjustments in policy, structural reforms, and the introduction of market-oriented practices.

In contrast to the correct answer, a "Developing Economy" refers to countries that are in the process of industrialization or improving their economic conditions but doesn’t specifically denote the transitional phase itself. A "Mixed Economy" describes an economic system that incorporates elements of both capitalism and socialism, which may not necessarily indicate a transition from one economic type to another. A "Market Economy" refers to an economy where supply and demand guide economic decisions, but it does not encapsulate the concept of transition between different systems.

Thus, "Transitional Economic System" is the most precise term that captures the essence of a country's movement from one economic type to another.

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