Question

Read the text. Then answer the question that follows.
 

In Australia, the government imposes some regulations on businesses, such as a minimum wage that they must pay workers. Starting a business is relatively easy, and businesses can operate how they choose as long as they follow regulations. Generally, business decisions about production and cost are based on the forces of supply and demand.

Based on this information, which statement about Australia and its economy is correct?
A.
Australia is one of the few countries in the world that has a pure market economy.

B.
Australia is one of the few countries in the world that has a pure command economy.

C.
Because the Australian economy has both market and command elements, it is considered a mixed economy.

D.
Because the Australian economy has both market and command elements, it is considered a traditional economy.

Answer 1

C. Because the Australian economy has both market and command elements, it is considered a mixed economy.

Explanation: Businesses mainly respond to supply and demand (market elements) but the government also imposes regulations like a minimum wage (command elements). This combination defines a mixed economy.