ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Why are most economies in the world today considered mixed economies? Most economies are considered mixed because most have some portion of the means of production under government control. Most economic systems also have some element of the market or capitalism.

Detailed explanation-2: -In practice, most countries of the world are mixed economies, although some are more market-oriented and others are more state-led.

Detailed explanation-3: -Role of Government in Mixed Economic Systems: As noted above, in the mixed economic system the Government plays a significant role in allocation of scarce resources and distribution of income. However, despite the important role of Government, the people and private enterprises are free to make economic transactions.

Detailed explanation-4: -Which of the following is a correct statement about a mixed economy? In a mixed economy, most economic decisions are made in markets but the government plays a significant role in the allocation of resources.