Question

The country described in this passage has an economy based on which economic principle? a country has a long tradition of allowing businesses to operate freely. citizens resist most government regulations on corporations and expect tax rates to be extremely low. as a result, the most powerful institutions in the country are companies rather than local or national governments.

o a. traditionalism
o b. capitalism o c. communism • d. socialism

Answer 1

The country described operates on the principle of capitalism, where businesses have the freedom to operate with minimal government interference and the main goal is to maximize profit.

Step-by-step explanation:

The economy of the country described in the passage is based on capitalism. This economic principle is characterized by allowing businesses to operate with minimal government intervention, low tax rates, and with companies being the most powerful institutions rather than government entities. In a capitalist economy, the primary goal is profit, and there is significant freedom for owners to utilize their assets for profitability and for individuals to sell their labor. This contrasts with socialism, where the government has more control over the economy, and with traditionalism, where economic activities are dictated by tradition.

Answer 2

The country described in this passage has an economy based on capitalism. Therefore, option (b) is the correct answer.

The country described in this passage has an economy based on capitalism. The passage mentions that the country has a tradition of allowing businesses to operate freely and citizens resist most government regulations on corporations.

This indicates a belief in the principles of capitalism, where the economy is driven by private ownership and free market competition.