Cashland is a nation that supports a free-market economy with private ownership of businesses. But lately, the government of Cashland has developed policies designed to help the needy and lessen the level of income inequality. These programs are funded by relatively high taxes on businesses and workers. These arrangements suggest that the economy of Cashland is trending toward pure capitalism.

Question

Quizplus · Accepted Answer

Pure capitalism is a system that emphasizes individual freedom and the profit motive. Socialism, on the other hand, emphasizes wealth equality. To achieve that goal, socialist countries levy high taxes to provide for social programs designed to bring about a more equitable distribution of wealth. Cashland has elements of both capitalism and socialism, so it is best described as a mixed economy.

Cashland Is a Nation That Supports a Free-Market Economy with Private