In an effort to promote rapid growth, the government of Goldinia has kept taxes low, done little to regulate business activities, and implemented only modest social programs. The government is now facing political pressure to do more to clean up the environment and to reduce the inequalities of income and wealth. Which of the following statements is most accurate? Goldinia's government is currently taking:
A) a purely capitalist approach to achieve its economic goals, and is likely to continue doing so in the future.
B) a purely socialist approach to achieve its economics goals, and is likely to continue doing so in the future.
C) a predominately socialist approach to achieving economic goals, but the current pressures it faces suggest it is likely to adopt a more capitalist approach in the future.
D) a predominately capitalist approach toward achieving economic goals, but the current pressures it faces suggest it is likely to adopt a more socialist approach in the future.

Question

Quizplus · Accepted Answer

The government of Goldinia is currently taking a predominately capitalist approach to achieve its economic goals, as evidenced by the low taxes, minimal business regulation, and modest social programs. However, the political pressures to clean up the environment and reduce income and wealth inequalities suggest that the government may adopt a more socialist approach in the future. Therefore, option D is the most accurate.

In an Effort to Promote Rapid Growth, the Government of Goldinia