Question

Decide whether each of the following descriptions most closely corresponds to being part of a command system, a market system, or a laissez-faire system.
a. A woman who wants to start a flower shop finds she cannot do so unless the central government has already decided to allow a flower shop in her area.
b. Shops stock and sell the goods customers want but the government levies a sales tax on each transaction to fund elementary schools, public libraries, and welfare programs.
c. The only taxes levied by the government are to pay for national defense, law enforcement, and a legal system designed to enforce contracts between private citizens.

Answer 1

Answer:

A. : Command System

B. : Market System

C:-Fair system

Explanation:

Explanation for A.

In a command system, no individuals own any form of resources in the country. Every single resources in that country owned by the government.

The government also determine the type of jobs that people could have along with the type of products that they have to produce mutually.

People under the command system will have no freedom to pursue their own economic interest. They have to obey whatever the government decided for them.

Explanation for B.

Market system give freedom to the citizens to pursue their own economic interest. But, the government still play a role as a regulator. (to ensure that the citizens play fairly and keep the citizens safe)

In this system the government will impose tax to the people that will be used to fund government programs. This fund is what being used to pay for public libraries, schools, and welfare programs.

Explanation for C.

In Laize-fair system, the people are given freedom to pursue their economic interest without government restrictions. Government's role is limited to providing safety from another country.

There will be no regulations for safe materials, safe working environment, labors protection, etc.