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marysya [2.9K]
3 years ago
15

What reason does the author suggest for why North Korea and the United States answer the three basic questions differently?

History
1 answer:
GrogVix [38]3 years ago
5 0

Answer:

The difference in economic system they implemented.

Explanation:

Here are three basic questions of economy:

- What To produce ?

- For whom we produce it ?

- how to produce it ?

Since United States adopted a free market system , the answers to all of these basic questions will be depended on the power of supply and demand that created by consumers and the producers.

North Korea on the other hand, implemented a Centralized economy. So, the answers to all of these basic question will be fully determined/decided by the government. The people have no power to influence them.

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