Question

Gabriela owns a company that makes silk scarves. She buys the silk from an overseas supplier and is subject to a tax on imported goods. Gabriela most likely lives in

a closed economy with limited government regulation.
a pure market economy with no government regulation.
a command economy with heavy government regulation.
a mixed market economy with some government regulation.

Answer 1

Gabriela most likely lives in **a mixed market economy with some government regulation**. In a mixed market economy, there is a combination of both private enterprise and government involvement, which can include regulations and taxes, such as the tax on imported goods that Gabriela faces. This scenario indicates that while she operates a business within a market system, there are governmental regulations affecting her operations.