The North Korean government owns all property and all economic output. Almost all imports are banned, and production of goods and services by foreign companies is forbidden. This would be an example of a free enterprise economy. True or False?

The correct answer is False.

Explanation

Free enterprise is the term used to refer to the enterprise of the capitalist economic system that is based on the freedom of the individual and opposes monopolies and state intervention as coercive forces.

North Korea is an Asian country located on the east end of the continent on the Korean peninsula, its political system is socialist that is characterized by having only one political party in the government who in turn exercises control over the means of production. Therefore, the North Korean government cannot be classified as a free enterprise government because the producing force is owned by the State, that is, the private company does not exist, in addition to the fact that it does not allow the importation of foreign products makes all the products must be manufactured in the country, reinforcing the socialist model in which the government controls all the production. So, the correct answer is False, a free enterprise is a term referred to capitalism system.

FALSE

Explanation:

North Korea is a communist country with a planned economy, run entirely by the state. On the contrary, A market economy operates under the logic of free enterprise so that firms act in a system of competition, via prices, for the market share. In this kind of economy, it is up to the state just to regulate the economic environment so that it is prone to the development of firms.