Question

In an effort to promote rapid growth, the government of Goldinia has kept taxes low, done little to regulate business activities, and implemented only modest social programs. The government is now facing political pressure to do more to clean up the environment and to reduce the inequalities of income and wealth. Which of the following statements is most accurate? Goldinia's government is currently taking:
A. A purely capitalist approach to achieve its economic goals, and is likely to continue doing so in the future.
B. A purely socialist approach to achieve its economics goals, and is likely to continue doing so in the future.
C. A predominately socialist approach to achieving economic goals, but the current pressures it faces suggest it is likely to adopt a more capitalist approach in the future.
D. A predominately capitalist approach toward achieving economic goals, but the current pressures it faces suggest it is likely to adopt a more socialist approach in the future.

Answer 1

Answer:

D. A predominately capitalist approach toward achieving economic goals, but the current pressures it faces suggest it is likely to adopt a more socialist approach in the future.

Explanation:

Goldinia applied a capitalist approach based on low taxes, almost no regulation in business activities and implementing only modest social programs. The goal was to let capitalist activity (market, production, business, etc.) be and let it develop. It is not pure capitalist but predominately capitalist approach, as taxes do exist, there are regulations for businesses and there are social programs, although modest.

However, the government now is receiving pressure to introduce more regulations for cleaning up the environment and reduce the inequalities in income and wealth, which are socialist measures... so it could adopt a more socialist approach in the future.