ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a mixed economy, resource allocation is determined by a combination of market forces and government intervention. Private individuals and businesses make decisions based on supply and demand, while the government regulates certain industries and may redistribute resources to achieve social and economic goals.

Detailed explanation-2: -In a mixed economy that is based on this, individuals own the factors and answers the basic economics questions. This type of economy relies on government officials to answer the three basic economic questions.

Detailed explanation-3: -In a mixed economic system, the private sector and public sector co-exist. There is a certain level of economic freedom so that the private sector can decide the use of capital and seek profits. It simultaneously allows the government to intervene in some economic activities and industries.

Detailed explanation-4: -Economists address these three questions: (1) What goods and services should be produced to meet consumer needs? (2) How should they be produced, and who should produce them? (3) Who should receive goods and services? The answers to these questions depend on a country’s economic system.

Detailed explanation-5: -Command economy relies on government officials to answer the three basic economic questions. Officials called – central planners/ decide on what will be produced and made. Individuals have little or no say in economic choices.