Answer to Question #53808 in Economics of Enterprise for Katie
Two traditional economies are trying to industrialize. The leaders of the first favor a command economic system. The leaders of the second want to try more free market-based policies. Which of the following actions would likely occur in one but not the other industrializing economy?
1. Conversion of farmland from agriculture to industry
2. Export of surplus goods not consumed locally
3. Investment in loans to support independent start-ups
4. Payment of workforce based on units of production