The North Korean government controls all parts of the country’s economy. The government’s economic plans aim to make the country economically independent, but the country has a history of food shortages and other shortages. While the government states that it wants to improve the standard of living in the country, it does little to accomplish this goal. Instead, it spends a lot of money building up the military.
Answer
A
Governments with traditional economies struggle to meet their goals.
B
Governments with market economies struggle to meet their goals.
C
Governments with mixed-market economies struggle to meet their goals.
D
Governments with command economies struggle to meet their goals.
Explanation
A command economy is one in which the government controls major economic decisions, including what is produced and how resources are used. North Korea’s government controls the economy and directs substantial resources toward the military, while shortages and low living standards persist. This illustrates how governments with command economies can struggle to meet their goals, so D is correct.
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