ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -This is because much of the transactions that take place today are still between private groups but a large part of the economy is controlled by the government. The US economic system is thus mixed and not solely a market economy or command system.
Detailed explanation-2: -In terms of consumer goods and business services, the United States economy operates as a free market. In terms of defense (and with regard to certain aspects of retirement benefits and medical care), it operates as a command economy.
Detailed explanation-3: -Understanding Command Economy. Cuba, North Korea, and the former Soviet Union all have command economies.
Detailed explanation-4: -The United States is a mixed economy, including both free market and command economies.
Detailed explanation-5: -The U.S. has a mixed economy, exhibiting characteristics of both capitalism and socialism. Such a mixed economy embraces the free market when it comes to capital use, but it also allows for government intervention for the public good.