Question

Which is true of the types of economies discussed in this lesson?

a. A traditional economy primarily uses money to buy and sell items.
b. Countries in a command economy are open to entrepreneurs and private businesses.
c. Countries that are mixed economies blend government ownership of industries as well as private ownership businesses.
d. There are no pure market economies in the world.

Answer 1

The true statement about the types of economies is that mixed economies combine both government and private ownership of businesses (option c). Most global economies are indeed mixed, with varying degrees of government involvement.

Step-by-step explanation:

The answer to the question about types of economies is c. Countries that are mixed economies blend government ownership of industries as well as private ownership businesses. Most economies around the world are indeed mixed economies, incorporating elements from traditional, command, and market systems. While the U.S. is more market-oriented, many countries in Europe and Latin America have a mix but with greater government involvement. Russia and China are closer to a command economy but have been transitioning towards more market-oriented practices.

A traditional economy is based on customs, heritage, and usually involves bartering rather than the use of money. A command economy is characterized by government control and ownership of resources and businesses, with limited opportunities for private entrepreneurs. A market economy is based on private ownership and market forces, but a pure market economy without any government interference does not really exist.