Multiple Choice
In the context of a cashless society, how is individual privacy most likely affected?
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0. Basic Principles of Economics
Introduction to Economics
Struggling with Microeconomics?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is an example of a market economy?
A
North Korea
B
The United States
C
The former Soviet Union
D
Cuba
Verified step by step guidance1
Understand the definition of a market economy: it is an economic system where decisions regarding investment, production, and distribution are guided by the price signals created by supply and demand, with minimal government intervention.
Identify characteristics of the given countries: North Korea, the former Soviet Union, and Cuba are known for having centrally planned economies where the government controls most economic activities.
Recognize that the United States operates primarily as a market economy, where private individuals and businesses make most economic decisions based on market forces.
Compare the options by matching their economic systems to the definition of a market economy to determine which fits best.
Conclude that the United States is the example of a market economy among the options provided.
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