Question

2. Study the extract below and answer the questions that follow. In many of the world's economies, such as the United States of America (USA), private individuals can choose where they want to work, own land and businesses. In other economies, such as Cuba, the government owns the land and businesses and tells people what to produce. These countries use different economic systems. There are three different economic systems, namely a planned, market and mixed market economic system. 2.1. Identify the type of economic system that is used by the USA. Motivate your answer by quoting from the text. (2x1) (2) Identify the type of economic system that is used by Cuba. Motivate your answer by quoting from the text. (2x1) (2) Which economic system is used in South Africa? Differentiate between a planned and market economic system. Discuss THREE characteristics of a mixed market economy. (2x2) (4) (3x2) (6)​

Answer 1

The type of economic system that is used by the USA is a market economic system. This is indicated in the text by the statement that "private individuals can choose where they want to work, own land and businesses".

The type of economic system that is used by Cuba is a planned economic system. This is indicated in the text by the statement that "the government owns the land and businesses and tells people what to produce".

South Africa uses a mixed market economic system.

A planned economic system is characterized by government control and central planning. In such a system, the government determines what goods and services are produced, how they are produced and distributed, and what prices they are sold at. The government also owns and controls all major industries and resources. In contrast, a market economic system is characterized by private ownership of resources and businesses, and the decisions about what goods and services to produce and how to distribute them are made by individuals and firms in the marketplace.

A mixed market economy combines elements of both planned and market economies. Some of the characteristics of a mixed market economy include:

Private ownership of resources and businesses alongside state ownership or control of some resources and industries

Decisions about what goods and services to produce and how to distribute them are made both by individuals and firms in the marketplace and by the government

A mix of government regulation and free market competition to balance the interests of individuals and society as a whole.

Step-by-step explanation: