Question

• d) command

1. in which economic system does the government control all businesses and make all economic decisions?

• a) mixed
• b) command
• c) market
• d) traditional

1. which economic system relies on the forces of supply and demand to set prices?

• a) command
• b) market
• c) traditional
• d) mixed

1. north korea is an example of a ________ economy.

• a) market
• b) mixed
• c) command
• d) traditional

in a mixed economy, who is involved in making economic decisions?

• a) only the government
• b) only private businesses
• c) both government and private businesses
• d) only consumers

Explanation:

Question 2

In a command economic system, the government has central control over all businesses and makes all economic decisions. A mixed economy has both government and private involvement, a market economy relies on private entities and supply - demand, and a traditional economy is based on customs. So the government controlling all businesses and making all economic decisions is characteristic of a command economy.

In a market economic system, prices are determined by the forces of supply and demand. In a command economy, the government sets prices, a traditional economy has prices based on customs, and a mixed economy has a combination of government intervention and supply - demand forces. So the economic system that relies on supply and demand to set prices is the market economy.

North Korea has a command economy where the government has significant control over economic activities, including production, distribution, etc. A market economy is driven by private enterprise, a mixed economy has both private and government involvement, and a traditional economy is based on traditional customs and practices. So North Korea is an example of a command economy.

Answer:

b) Command

Question 3