Question

Free trade, low taxation, absence of restrictions on foreign investment, absence of controls on bank lending activity, absence of wage and price controls, simple & easy business licensing procedures, and protecting private property:

a) Characteristics of a mixed economy
b) Principles of socialism
c) Factors promoting economic freedom
d) Features of a command economy

Answer 1

The characteristics described are indicative of economic freedom and a capitalist or free market system, not a mixed economy, principles of socialism, or a command economy. They support private property rights, minimal government intervention, and encourage competition and incentives.

Step-by-step explanation:

The characteristics you've described align with economic freedom, which are hallmarks of a capitalist or free market system. A mixed economy may have some of these traits but also includes various degrees of government intervention. Socialism, on the other hand, typically involves government control over production and distribution. Principles of socialism might integrate elements of free markets in a 'market socialism' system. Finally, a command economy involves extensive government control and would not typically exhibit the features you've listed.

In a capitalist system, private property rights are crucial, there's an emphasis on incentives for individuals and businesses, competition is encouraged, and the role of government is typically to protect these rights and provide a stable environment for the economy to function. Excessive government intervention, such as controlling wages and business licensing, would not be in line with the capitalist model, as it restricts economic freedom.