Country GG is an economy where the government controls some parts of the economic system. The government makes some decisions about production and distribution. Firms and consumers are also free to exchange money for goods and services – firms can profit by buying resources and using them to produce. Which type of economic system does Country GG have?

Question

BlackTom AI · Accepted Answer

Let's examine each option in relation to the description given for Country GG.

Option a: Market. This would imply a pure free-market system with minimal or no government intervention in production and distribution, and firms/consumers freely exchanging resources with limited government decisions. The prompt states the government controls some parts of production and distribution, so this option does not fully align with the described system.

Option b: Planned. A fully planned (or command) economy is one in which the government makes most or all production and distribution decisions, leaving little room for firm or consumer autonomy in exchange and resource use. Since the scenario notes that firms and consumers are free to exchange money for goods and services and can profit from using resources, there is clear economic activity outside of central planning, which makes this option inconsistent with the description.

Option c: Mixed. A mixed economy features a combination of government intervention and market mechanisms. The government controls some aspects of production and distribution, while firms and consumers engage in voluntary exchange and profit-seeking. This aligns well with the given information about Country GG.

Option d: Impossible. Given the described coexistence of government involvement and market freedom, the situation is plausible and common in many real-world economies, so labeling it as impossible would be factually inaccurate.

In summary, option c presents a hybrid arrangement where state involvement coexists with market-driven activity, which best matches the scenario described for Country GG. The other options describe more extreme or incompatible systems for the provided context.

MUF0061 Economics Unit 1 - Semester 2, 2025

View Explanation

Log in for full answers

Similar Questions

Question at position 59 Capitalism is a way of organizing economic life that is characterized by private ownership of the means of production.public ownership of the means of production.government-controlled markets.cooperation over competition.

Which of the following is determined by an economic system? BlackTom题目解析

Which are major decisions that must be addressed by an economic system? (More than one answer may be correct.) BlackTom题目解析

For which of the following types of economies would the factors of production depend on the relative distribution of market forces versus command forces?

Entrepreneurs and investors are allowed to receive all profits (net of taxes) that their firms earn. The rights to profits described here are most likely to occur with:

What type of economic system do most countries in the world today have?

What type of economic system do most countries in the world today have?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler