11
QuizMultiple Choice

Economic Systems and Daily Life — Quiz

Question 11 • Economics

Gabriela owns a company that makes silk scarves. She buys the silk from an overseas supplier and is subject to a tax on imported goods. Gabriela most likely lives in

Answer
A
a mixed market economy with some government regulation.
B
a closed economy with limited government regulation.
C
a command economy with heavy government regulation.
D
a pure market economy with no government regulation.

Explanation

A tax on imported goods is a form of government regulation of international trade. In a mixed market economy, businesses are privately owned and make many of their own decisions, while the government still regulates some economic activity. That fits Gabriela's situation, so the best choice is “a mixed market economy with some government regulation.”

AI-written and checked against the verified answer.

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