An active, but limited, government is characteristic of which type of economic system in modern advanced industrial economies?

BlackTom题目解析

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An active, but limited, government is characteristic of which type of economic system in modern advanced industrial economies?

BlackTom题目解析

BlackTom AI · Accepted Answer

The question asks us to identify which description best fits the type of economic system found in modern advanced industrial economies when the government is active but limited.
Option 1: Command system. In a command system, the government has extensive control over economic activity, including production decisions, pricing, and resource allocation. The descriptor “active but limited” does not align with the typical high degree of government control implied by a pure command system, which tends to be less market-driven and more centralized.
Option 2: Price-controlled system. A price-controlled approach focuses specifically on government intervention in prices rather than the broader structure of the economy. While price controls can exist within various systems, calling this a standalone description for an entire economy’s type is ambiguous and not accurate for modern advanced economies, which generally rely on markets for most price signals and resource allocation, with only selective interventions.
Option 3: Modern market system. In modern advanced economies, the government plays a role to regulate, stabilize, and provide public goods, but most economic decisions are guided by market forces. This reflects a framework where government action is present and constrained, aligning with the idea of an active yet limited government within a market-based system.
Option 4: Centrally planned system. Centrally planned or socialist economies involve extensive government planning and direction over economic activity. This stands in contrast to the notion of “limited” government involvement typical of modern economies, making it inconsistent with the description given in the question.
Across the options, the core contrast is between systems with extensive centralized control versus those driven by market forces with selective government intervention. The phrase “active, but limited” most cohesively maps onto a market-oriented framework that allows private enterprise and market mechanisms to allocate most resources, while the government intervenes selectively to address public goods, regulation, and fairness.
If you consider how each option would operate in practice, you can see why the other choices diverge from the described balance of government involvement and market activity. For instance, a pure command or centrally planned system would imply far more government control than “limited,” while a price-controlled system focuses narrowly on prices rather than overall economic organization. The modern market system best captures the nuanced balance described.

An active, but limited, government is characteristic of which type of economic system in modern advanced industrial economies? BlackTom题目解析

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