Answer to Question #68516 in Economics of Enterprise for Donayja Gates

Question

Country A has a mixed economy with free-market leanings. Country B has an absolute command economy. Both want to increase corn product exports. Which action would Country A most likely take that Country B would not?

Answer 1

Country A most likely would set a subsidy for exporters, but as Country B has command economy, then it would not implement such policy, because it is better for it to set lower prices for corn.