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Country A has an absolute command economy. Country B has a mixed economy and a population that favors market trade. Both want to increase trade to generate more wealth. Which action would Country B most likely take that Country A would not?

Impose stricter divisions of labor

Increase production quotas

Loosen certain trade regulation

Permit limited private ventures

1 Answer

3 votes
Let's look at all the options in turn:
Impose stricter divisions of labor
-this doesn't have anything to do with trade, so it's not the correct answer.

Increase production quotas
-what we want is a bigger trade, not production, so again, not the correct answer

Loosen certain trade regulation
-this is the best answer. Loosening trade regulations will increase trade, but country A won't do it since it would challenge their control over the market

Permit limited private ventures
-in country B those are likely already permitted anyway
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