6
QuizMultiple Choice

Economic Systems and Daily Life

Question 6 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

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

Explanation

A tax on imported goods is a form of government regulation of trade. In a mixed market economy, businesses are generally privately owned, but the government regulates some economic activity, such as imports. A pure market economy would have no government regulation, so Gabriela most likely lives in a mixed market economy with some government regulation.

AI-written and checked against the verified answer.

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