Question

In the nation of Equalia, many businesses are privately owned, but the government owns some of the basic businesses and has developed many social programs designed to promote social equality. The economy of Equalia would be considered an example of:

a) Laissez-faire capitalism
b) Mixed economy
c) Command economy
d) Market socialism

Answer 1

The economy of Equalia, with a combination of government ownership of certain businesses and many privately owned enterprises along with social programs, is an example of a mixed economy.

Step-by-step explanation:

The economy of Equalia, as described, would be considered an example of a mixed economy. In Equalia, the government owns some basic businesses and has established social programs to promote social equality, but there are also many privately owned businesses. This resembles the economic systems of various American and Eastern European countries where key industries are nationalized and regulated by the government, while allowing for substantial private ownership and enterprise.

These characteristics differentiate it from the extremes of a laissez-faire capitalism, which has minimal government intervention, and a command economy, which is fully controlled by the government and usually exists in communist states. It also diverges from market socialism, which implies more widespread government ownership along with market practices for efficiency and incentive reasons, yet still with a strong commitment to social equality and redistribution.