ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government determines the production and distribution of goods and services.
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Some industries are owned by the state, and others are privately owned.
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The products that consumers demand determine what goods are produced.
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People produce the same goods, but in different amounts, every year.
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Detailed explanation-1: -A mixed economy has some aspects of both socialism and government control. This means that some industries are controlled by private businesses and individuals, while other industries are controlled by the government.
Detailed explanation-2: -Producers and consumers make some economic choices while the government makes others.
Detailed explanation-3: -Mixed economy is one in which both public and private enterprises exist together, with some level of freedom to utilize capital for profit making.
Detailed explanation-4: -Characteristics of Mixed Economies A mixed economy has three of the following characteristics of a market economy. First, it protects private property. Second, it allows the free market and the laws of supply and demand to determine prices. Third, it is driven by the motivation of the self-interest of individuals.
Detailed explanation-5: -In a mixed economy, both public and private sectors own and produce goods and services. While private players participate in the production of goods and services, the government makes major decisions for the economy keeping social welfare in mind. This keeps a check on economic disparity.