Question

Use the economic continuum to answer the question.

The continuum is labeled 'Pure Command' on the left, and 'Pure Market' on the right. Point A is the leftmost point and located near the left end of the continuum. Point B is located to the right of Point A, near the center of the continuum, on the command side. Point C is located to the right of Point B, near the center of the continuum, on the market side. Point D is located to the left of Point C; it is the rightmost point and located near the right end of the continuum.

In the Canadian economy, entrepreneurship is encouraged, private property rights are respected, and there is limited government control of economic activity. Based on this description, where would the Canadian economy be placed along the economic continuum?

Answer 1

Point C.

Reason: Canada is a mixed economy that leans toward the market side (private property, entrepreneurship, limited government control), so it belongs on the market side near the center rather than at the extreme market end (D) or on the command side (A or B).