Identify the type of economic system described in each scenario and explain why.

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.