Analyze the chart. Which statement best describes a comparison between East Asian economic systems?

(1 point)
Responses

China's ecomomy is purely market based and Japan's economy is purely command.

China's economy is purely command, and Japan's is purely market.

Taiwan's economy is less market based than that of North Korea

North Korea has a more purely command economic system than China.

1 answer

To analyze the statements based on a comparison between East Asian economic systems, let's break down each option:

  1. China's economy is purely market based and Japan's economy is purely command.

    • This statement is inaccurate. China's economy has significant market-based elements but also retains elements of state control (socialist market economy). Japan has a market economy with strong government-industry collaboration, not a purely command system.
  2. China's economy is purely command, and Japan's is purely market.

    • This statement is also incorrect. China does not have a purely command economy; it has introduced market reforms since the late 20th century. Japan's economy operates primarily as a market economy, but it is not purely market-driven due to government intervention.
  3. Taiwan's economy is less market based than that of North Korea.

    • This statement is false. Taiwan has a robust market-based economy, while North Korea operates under a highly controlled command economy. Thus, Taiwan's economy is not less market-based; it is significantly more market-oriented than North Korea's.
  4. North Korea has a more purely command economic system than China.

    • This statement is true. North Korea's economy is characterized by strict state control with little to no market influence, while China incorporates various market mechanisms despite its state ownership in many sectors.

Given this analysis, the best description that conforms to the comparative economic systems is:

North Korea has a more purely command economic system than China.

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