Which of the Following Statements Is True of the Economic

question 4

Multiple Choice

Which of the following statements is true of the economic system of North America?

• A) The free-market-based economy of this region allows considerable freedom in decision-making processes of private firms.
• B) The command economy of this region allows for high flexibility with decisions and low barriers for other countries to establish business.
• C) The free-market-based economy of this region results in low trade barriers when attempting to move into other countries.
• D) The command economy of this region allows competition to strive while the government can extend assistance to individuals or companies.

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Definitions:

Sovereign Powers

The ultimate authority or power of a state to govern itself or another state, including making and enforcing laws, without external interference.

Central Government

The primary government authority of a nation, responsible for national policy and administration.

Federalism

A system of government in which power is divided between a central authority and constituent political units, like states, ensuring a degree of self-governance.

Written Constitution

A formal document defining the nature, functions, and limits of a government or another institutional structure.