Which of the following correctly arranges the types of economies from least government involvement to greatest government involvement?
A
Mixed economy, market economy, command economy
B
Market economy, command economy, mixed economy
C
Command economy, mixed economy, market economy
D
Market economy, mixed economy, command economy
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1
Step 1: Understand the definitions of each type of economy. A market economy is one where economic decisions and pricing are guided by the interactions of citizens and businesses with minimal government intervention.
Step 2: Recognize that a mixed economy combines elements of both market and command economies, meaning there is some government involvement alongside private enterprise.
Step 3: Know that a command economy is characterized by significant government control over production, pricing, and distribution decisions.
Step 4: Arrange the economies in order of increasing government involvement: start with the market economy (least government involvement), then the mixed economy (moderate government involvement), and finally the command economy (greatest government involvement).
Step 5: Confirm that the correct sequence from least to greatest government involvement is: Market economy, Mixed economy, Command economy.