Multiple Choice Question

Question

Use the table to answer the question.

What information from the table indicates that Kenya and Nigeria do not have pure market economies?
A.
the high unemployment rates

B.
the high gross domestic products

C.
the presence of privately owned businesses

D.
the presence of government-owned businesses

Answer 1

The correct answer is:

D. the presence of government-owned businesses

In a pure market economy, the allocation of resources is determined by supply and demand with minimal government intervention. The presence of government-owned businesses indicates that the government has a role in the economy, suggesting that Kenya and Nigeria do not have pure market economies.