Chapter 2: Which of the following countries currently have centrally planned economies?

• A. Japan
• B. Germany
• C. North Korea
• D. United States

Answer: (C)

Verified step by step guidance

1. Understand the concept of a centrally planned economy: it is an economic system where the government makes all decisions about the production and distribution of goods and services, rather than market forces.
2. Identify the characteristics of countries with centrally planned economies, which typically include state ownership of resources and centralized control over economic activities.
3. Review the list of countries provided: Japan, Germany, North Korea, and the United States.
4. Recall that Japan, Germany, and the United States have market-based economies with significant private sector activity and limited government control over production decisions.
5. Recognize that North Korea is known for its centrally planned economy, where the government controls most aspects of economic production and distribution.