Question

The United States is an example of a mixed economy. The type of economy that encourages businesses to compete and keep prices low is a market economy. The government owns most of the businesses in a command economy. The economy that limits the choices of consumers and producers is a command economy.

1. True
2. False

Answer 1

The statement is true; the United States has a mixed economy that leans towards a market-oriented system, combining elements of market and command economies.

Step-by-step explanation:

The statement in question is referencing different types of economies: the market economy, which promotes competition and tends to keep prices low, and the command economy, where the government owns most businesses and consumer and producer choices are limited. The question about the United States having a mixed economy that leans towards being market-oriented is indeed true. While the U.S. economy is largely based on market principles, it combines elements of both market and command systems, with government intervention in certain sectors. Countries like China and Russia have historically been closer to the command economy end but have been moving towards more market-oriented systems over the past few decades.