In Nigeria, people can open their own businesses, choose their careers and job paths, and can purchase a wide array of consumer goods. However, the national government institutes tariffs on imported goods, has a significant share in the oil industry, and regulates much of the country's industry.

Question

Based on this description, Nigeria could BEST be categorized as a ___ economy. Responses

(1 point)
Responses

Command
Command

Market
Market

Mixed
Mixed

Traditional
Traditional
Question 2
African countries have a mixed economic system located on a continuum between pure market and pure command. Which of the following statements accurately reflects this concept?(1 point)
Responses

Pure market economies rely solely on government directives to allocate resources efficiently, while pure command economies allow market forces to determine resource allocation.
Pure market economies rely solely on government directives to allocate resources efficiently, while pure command economies allow market forces to determine resource allocation.

Mixed economies combine elements of both market and command systems, with government intervention and market forces influencing resource allocation to varying degrees along a continuum.
Mixed economies combine elements of both market and command systems, with government intervention and market forces influencing resource allocation to varying degrees along a continuum.

Pure market economies are entirely devoid of government influence, while mixed economies grant government full control over resource allocation decisions.
Pure market economies are entirely devoid of government influence, while mixed economies grant government full control over resource allocation decisions.

Command economies strictly adhere to supply and demand dynamics, whereas mixed economies are characterized by a complete absence of market-driven decisions.
Command economies strictly adhere to supply and demand dynamics, whereas mixed economies are characterized by a complete absence of market-driven decisions.

Answer 1

Based on the description provided, Nigeria could BEST be categorized as a Mixed economy. This classification is due to the presence of both market-driven elements (such as the ability for individuals to start their own businesses and choose their careers) and government interventions (like tariffs on imported goods and the government's significant role in the oil industry).

For the second question, the statement that accurately reflects the concept of mixed economic systems is:

Mixed economies combine elements of both market and command systems, with government intervention and market forces influencing resource allocation to varying degrees along a continuum.

This statement correctly captures the essence of mixed economies, which lie between pure market and pure command economies, involving a blend of government regulation and market-driven forces.