Tim owns and operates his own small automobile repair shop. However, the prices he can charge are fixed, and he rents his land and building from the government. Most of his friends work for industries owned by the government, although they also enjoy a high level of social services. Tim's country is most likely which type of economy?
A) market
B) communist
C) socialist
D) capitalist

Question

Quizplus · Accepted Answer

The fact that Tim's prices are fixed and he rents his land and building from the government suggests that the economy is not fully market-based. Additionally, the high level of social services available to Tim's friends suggests that the government plays a significant role in providing for its citizens. Therefore, the country is most likely a socialist economy.

Tim Owns and Operates His Own Small Automobile Repair Shop