A mixed economy
A)Is justified by the superiority of laissez faire over government intervention.
B)Utilizes both market and nonmarket signals to allocate goods and services.
C)Relies on the use of central planning by private firms rather than the government.
D)Is one that allows trade with other countries.

Question

Quizplus · Accepted Answer

A mixed economy is one that utilizes both market (such as prices and profits) and nonmarket (such as government regulations and subsidies) signals to allocate goods and services. It is a system that combines elements of both capitalism and socialism, where the government may intervene to regulate certain industries and provide support to those in need, while allowing for private ownership and entrepreneurship. It does not necessarily rely on central planning by private firms or prioritize trade with other countries.

A Mixed Economy