Which statement is true? (LO7) a) In recent years the U.S. economy has become primarily socialistic. b) There is one model for capitalism that virtually every capitalist economy follows closely. c) The American economic model has been followed very closely by Japan since the late 1940 s and China since the early \(1980 \mathrm{~s}\). d) There is no substantial difference between socialism and communism. e) None of the above.

To answer this question correctly, it is necessary to have a foundational understanding of the different economic systems mentioned: socialism, capitalism, and communism. Socialism: An economic system where the ownership of the means of production (such as factories, resources, and businesses) is collectively owned by the society or the government. Capitalism: An economic system where the ownership of the means of production is held by private individuals or businesses, with the goal of profit maximization. Communism: An economic system where the ownership of the means of production is held by the government or the state, with the goal of creating a classless society where every individual's needs are met.

a) In recent years the U.S. economy has become primarily socialistic. This statement is false. The U.S. economy has maintained its capitalist status and has remained primarily capitalist in recent years. b) There is one model for capitalism that virtually every capitalist economy follows closely. This statement is false. Capitalism includes a variety of different models such as laissez-faire capitalism, welfare capitalism, and state capitalism. Each capitalist economy may adopt different features and approaches within the framework of capitalism. c) The American economic model has been followed very closely by Japan since the late 1940s and China since the early 1980s. This statement is false. While Japan and China have adopted some aspects of the American economic model, they have also developed their own unique features and variations. Japan developed a more cooperative relationship between the government and the private sector, while China combined elements of socialism and capitalism in their economic system. d) There is no substantial difference between socialism and communism. This statement is false. Although both socialism and communism focus on collective ownership of the means of production, they have different end goals and features. Communism aims to create a classless, stateless society where the needs of each individual are met, while socialism may still allow for different classes and the existence of a state.

Since statements (a), (b), (c), and (d) are all false, the correct answer is: e) None of the above.