Which of the following statements best describes a mixed economy?
A)In a mixed economy, society determines production and the allocation of goods and services only through the market system.
B)In a mixed economy, government policies determine the production and the allocation of goods and services, but each individual is free to pursue his or her own self-interest.
C)In a mixed economy, the government and private sectors interact in determining production and allocation of goods and services.
D)In a mixed economy, the role of individual self-interest is relatively unimportant because government makes most of the economic decisions.

Question

Quizplus · Accepted Answer

A mixed economy is a combination of a market economy and a command economy. In a mixed economy, both the government and private sector interact in determining the production and allocation of goods and services. The government intervenes when necessary to promote the general welfare and prevent negative externalities, while individuals and businesses are free to pursue their self-interest within the framework of government regulations. This system aims to balance the benefits of the market economy, such as efficiency and innovation, with the benefits of the command economy, such as social equity and stability.

Which of the Following Statements Best Describes a Mixed Economy