Part I Directions: Read each scenario about Countries A, B, and C. Determine what type of economic system each country has (question a. in blue) and explain your answer in part b.
(also in blue).
1. State planners in Country A met to decide what the country should focus on producing.
After much discussion, they decided it would be in the country's best interest to use
their limited resources to produce automobiles instead of other consumer goods, such
as electronics or textiles. The state planners passed their decision down to the factories,
and allocated (gave) the factories raw materials, workers, and other resources needed to
produce automobiles. Factories were then told how much they should produce with
these resources and who the final products should be shipped to.
a. What type of economic system does Country A have?
Mixed
b. How do you know Country A has this economic system? Use evidence from the
scenario.