Question

select the correct answer.

linda owns a successful clothing store. she wants to expand her business by starting another store. but she cannot do so because the government allows a person to own only one store. which type of economy does this scenario describe?

a. traditional economy

b. mixed economy

c. communist economy

d. market economy

Explanation:

• A traditional economy is based on customs and traditions, not government restrictions on business ownership.
• A mixed economy has both private and government involvement but doesn't typically restrict business ownership to one per person.
• A communist economy (or command economy) has the government controlling production and resources, including business ownership limits, which matches Linda's situation where the government restricts her from opening another store.
• A market economy is driven by supply and demand with minimal government intervention, so business ownership restrictions like this wouldn't occur.

Answer:

C. communist economy