The diagram below shows two production possibilities boundaries for Country X.
FIGURE 1- 4
-Comparison of economic systems indicates that
A)most countries have mixed economies.
B)most nations have either a purely socialist economy or a purely capitalist economy.
C)all countries have largely traditional economies.
D)socialist economies are clearly superior in producing consumer goods.
E)capitalist economies are clearly superior in distributing income.

Question

The diagram below shows two production possibilities boundaries for Country X.
  FIGURE 1- 4
-Comparison of economic systems indicates that
A)most countries have mixed economies. 
B)most nations have either a purely socialist economy or a purely capitalist economy. 
C)all countries have largely traditional economies. 
D)socialist economies are clearly superior in producing consumer goods. 
E)capitalist economies are clearly superior in distributing income.

Quizplus · Accepted Answer

The diagram does not provide enough information to determine the economic system of Country X, but it does suggest that the country has the ability to produce a variety of goods and services, indicating a mixed economy. The other answer choices are not supported by the information provided in the diagram.

The Diagram Below Shows Two Production Possibilities Boundaries for Country