Final answer:
Glasnost refers to openness and greater freedom of speech initiated by Gorbachev in the USSR, while perestroika means restructuring, signifying economic reforms towards a market-like system.
Step-by-step explanation:
Mikhail Gorbachev was elected leader of the USSR in 1985 and he introduced significant reforms in an attempt to modernize the Soviet system. The terms "glasnost" and "perestroika" are central to these reforms. Glasnost, meaning 'openness,' referred to the policy of allowing greater freedom of speech and transparency of government activities, facilitating a more open society. On the other hand, Perestroika, meaning 'restructuring,' was about the economic reform towards market-like systems and the reduction of state control over the economy. These policies were meant to invigorate the Soviet economy and society but ultimately contributed to the dissolution of the Soviet Union.