ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Redesign products she sells so that fewer resources are used, therefore saving money
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Ignore the increasing costs of quilting supplies because her customers are loyal and they will continue to buy from her no matter what
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Sell a share of her business to the government
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Raise prices in the face of competition from Barb’s Beautiful Quilting Shop across the street
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Detailed explanation-1: -A combination of free market principles of private contracting and socialist principles of state ownership or planning is common to all mixed economies.
Detailed explanation-2: -A mixed economic system is an economy in which there exists private ownership by businesses and individuals (i.e., capitalism), but in which there is some degree of state involvement (i.e., socialism). In a mixed economy, the state allows varying degrees of freedom between producers and consumers.
Detailed explanation-3: -Maintaining a balance between private and government ownership is termed as mixed economy. Unlike capitalism, which seeks no government intervention, a mixed economy allows government intervention and ownership to some extent. Some people have likened the mixed economy a combination of capitalism and socialism.
Detailed explanation-4: -In a mixed economy both market forces and government decisions determine which goods and services are produced and how they are distributed. In general, market forces prevail in mixed economies.