4
QuizMultiple Choice

4.2 Comparing Economic Systems

Question 4 • FL-2100310-United States History A

Which method does a free-market economy use to encourage economic growth that a command economy does not?

Answer
A
the creation of a plan that outlines production goals and priorities
B
the use of supply and demand to determine prices
C
the creation of regulations that protect consumers and the environment
D
the use of government-owned businesses to provide jobs

Explanation

In a free-market economy, supply and demand help determine prices. Those prices signal what consumers want and encourage businesses to produce goods and services that may be profitable, promoting growth. A command economy relies more on government plans to set production goals, so the correct choice is “the use of supply and demand to determine prices.”

AI-written and checked against the verified answer.

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