Hi can anyone please help me it has to do with economic?

Question

Scenario # 5 Newfoundland

Newfoundland, Canada’s tenth province, occupies the easternmost part of North America. The

extensive fishing grounds, lying off the coast, are the reason why Newfoundland was settled,

and fish remains one of its most important resources. The most important fish is cod. In the

19th and early part of the 20th century, the people in Newfoundland were almost completely

dependent upon fishing for their income. In the 1960s and 1970s Newfoundland’s fishing

industry suffered from the effects of over fishing by fleets of ships operating off its coast. In

order to prevent the fish from being wiped out, the government limited the areas where fishing

was allowed. When that didn’t work, and the number of fish continued to decline, the

government had to declare a moratorium on fishing so the supply could increase. Today, once

again, people can become commercial fishermen, own their own boats, sell to any buyer, and

make a profit, but the industry is still regulated by the government.

What type of economic system does Newfoundland have?

A. Command System

B.Market System

C. Traditional System

Scenario # 6 Venezuela

Venezuela is the most northerly nation of South America. It has a long Caribbean and Atlantic

coast on the north and east. Neighbors include Colombia, Brazil, and Guyana. Venezuela’s

economy is dominated by petroleum products that represent about 95% of the country’s exports.

The petroleum industry is entirely government owned. The country’s main trading partners are

the United States, Germany, and Japan. Petroven, a Venezuelan government owned corporation,

might decide to reduce the production of oil from 2 million barrels per day to 1.5 million barrels

per day. In order to make up for the loss of oil revenue, Petroven might raise the price of the oil

by 50%.

What economic system would allow the government to make decisions like this?

A. Command System

B. Traditional System

C. Market System

Answer 1

Discussion of different types of economic systems:

market

traditional

command