How Are the Fundamental Economic Decisions Determined in North Korea

question 134

Multiple Choice

How are the fundamental economic decisions determined in North Korea?

• A)Individuals, firms, and the government interact in a market to make these economic decisions.
• B)These decisions are made by the country's elders who have had much experience in answering these questions.
• C)The government decides because North Korea is a centrally planned economy.
• D)The United Nations decides because North Korea is a developing economy.

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Definitions:

Naturalistic Observation

A technique of research that involves watching subjects in their natural habitats without any alterations made by the researcher.

Discretionary Income

Discretionary income is the amount of an individual's income left for spending, investing, or saving after taxes and personal necessities (like food and shelter) have been paid.

Positively Correlated

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Scientific Method

A systematic, organized series of steps that helps ensure objectivity and consistency in exploring a social or scientific question.