What type of economic system has free enterprise with strict government control?
A. traditional
B. market
C. command
D. mixed
D. mixed
The economic system that has free enterprise with strict government control is referred to as a mixed economic system. Now, let me explain how to arrive at this answer.
To determine the type of economic system that combines free enterprise with strict government control, we need to understand the characteristics of the different economic systems:
1. Traditional Economic System: This system relies on customs, traditions, and long-established societal patterns to determine economic activity. It typically lacks government intervention and is instead guided by cultural norms and historical practices.
2. Market Economic System: In this system, economic decisions are primarily driven by the forces of supply and demand. The government's involvement is minimal, allowing for private individuals and businesses to make decisions regarding production, consumption, and resource allocation.
3. Command Economic System: Also known as a planned or centrally planned economy, this system is characterized by the government's complete control over economic activities. The government determines what, how, and for whom goods and services are produced, and they often take ownership of the means of production.
4. Mixed Economic System: As the name suggests, this system combines elements of both the market and command systems. It features private ownership and free enterprise, allowing individuals and businesses to operate in a competitive marketplace. However, the government has significant control through regulations, interventions, and policies aimed at ensuring fairness, economic stability, and public welfare.
Given the information above, we can deduce that the economic system with free enterprise and strict government control is the mixed economic system, making option D the correct answer.