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

Answer: (D)

Verified step by step guidance

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.
2. Step 2: Recognize that a mixed economy combines elements of both market and command economies, meaning there is some government involvement alongside private enterprise.
3. Step 3: Know that a command economy is characterized by significant government control over production, pricing, and distribution decisions.
4. 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).
5. Step 5: Confirm that the correct sequence from least to greatest government involvement is: Market economy, Mixed economy, Command economy.