This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
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QUESTION 8 A. Mixed Explanation: A mixed economy combines elements of both free market and command economies. Papua New Guinea's economy features both private enterprise and significant government involvement in various sectors, making it a mixed economy. QUESTION 9 D. Free Market Explanation: A free market economy is characterized by private ownership of resources, economic decisions made by individuals and businesses, and competition among businesses. The description perfectly matches this definition. QUESTION 10 D. According to treasury minister, the government has planned a deficit budget for 2015. Explanation: A positive economic statement is an objective, factual statement that can be tested or verified. It describes "what is." Options B and C are normative statements because they express opinions or what "should" be done. Option A is also a factual statement, but option D is a very clear example of a positive statement as it reports a specific, verifiable economic plan made by the government for a particular year. 3 done, 2 left today. You're making progress.