Question

What is the main difference between the economies of China and North Korea?

A. North Korea is not centrally planned.
B. North Korea is privatizing businesses.
C. China is privatizing businesses.
D. China is not centrally planned.

Answer 1

The correct answer is C.

North Korea has an economy in which economic relations with the other countries are minimal. The entire economy of North Corea is managed by the State Planning Committee, prohibiting all private companies in the country.

On the other hand, China manages a socialist economy, however the government allows the existence of private companies in limited sectors.

Answer 2

One of the main differences between the economies of China and North Korea is that "C. China is privatizing businesses," since although China is technically a communist state, they embrace many aspects of capitalism.