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Of the following countries, which one best exhibits the characteristics of a market economy?

Multiple Choice
a.Germany
b.Belarus
c.Cuba
d.North Korea

User Ken Fox
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1 Answer

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Final answer:

Germany is the country that best exhibits the characteristics of a market economy among the options given, due to its strong market orientation and private ownership combined with social welfare practices.

Step-by-step explanation:

Of the countries listed, Germany best exhibits the characteristics of a market economy. A market economy is a system where the laws of supply and demand direct the production of goods and services. Market forces determine the prices of goods and services, and the means of production are largely or entirely privately owned and operated. Although most economies today are mixed with varying degrees of government intervention, Germany is known for its strong market-oriented economy combined with certain social welfare practices, which is often referred to as a "social market economy". In contrast, Belarus, Cuba, and North Korea are more command-oriented economies, with higher levels of government control over economic decisions and resources.



According to both the Heritage Foundation and Cato Foundation, economies such as the United States and Germany are closer to the market-oriented end of the spectrum. The degree of economic freedom, as indicated by these foundations, shows that Germany is one of the countries with a high level of market orientation and is therefore the most accurate answer from the options provided.

User Ryanbwork
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