Question

Match each country with its most likely place on the economic continuum. China Japan North Korea India

Answer 1

Answer:

The economic continuum goes from a command, planned economy on the extreme left side, to a fully free market economy on the extreme right side, and various combinations of both in the middle.

China: China is in part a command economy, because the state still has prevalence in some key sectors, for example, in banking. However, it also has many aspects of a free enterprise system. Its position is slightly to the left.

Japan: Japan is an economy that is freer than the world-average. Private firms dominante the economy. Its position is comfortably on the right side of the continuum.

North Korea: North Korea is the least free economy in the world. It is a planned, command economy where private property basically does not exist. Its position is on the extreme left.

India: India is freer than China, but less free than Japan. It used to be a very planned economy, but has been liberalizing many sectors. Its position is slightly to the right.