For the last several years, the country of Amerensia has been moving from a communist country to a more mixed economic system. Which of the following most likely would not occur in Amerensia?

a) An increase in the level of government involvement in trade. b) Private ownership of business. c) An increase in the rate at which jobs are created. d) More incentives for workers to work harder.

Question

Business

Gina

21 September, 04:05

For the last several years, the country of Amerensia has been moving from a communist country to a more mixed economic system. Which of the following most likely would not occur in Amerensia?

a) An increase in the level of government involvement in trade. b) Private ownership of business. c) An increase in the rate at which jobs are created. d) More incentives for workers to work harder.

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Answers (1)

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Izabelle Stein · Answer 1

Private ownership of business

Explanation:

A mixed economy combines elements of both a socialist and a free market economy. The government participates in a mixed economy as a regulator to ensure fairness in the market place, and as a provider of social goods. A mixed economy creates the freedom to establish a private business of an investor's preference. A Buyer has the freedom to purchase products of their choice.

An economy that is transitioning from socialist to mixed economy will likely experience the development of private businesses. In a socialist economy, only the government is allowed to own the factors of production. It produces all the goods and services in the country. As a mixed economy allows private ownership of businesses, the people of Amerensia will be free to establish and run their businesses.