The government of Junta took Fuel Safe Corp., a domestic energy firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the energy industry were enraged by this decision. As a result, the government had to reduce the tax burden on all private energy firms so that both the state-owned enterprise and private firms could coexist. What type of economy does this portray?

Question

Quizplus · Accepted Answer

This scenario describes a mixed economy, where both state intervention and private enterprise coexist. The government intervenes by taking a company into state ownership and also adjusts policies to support private firms.

The Government of Junta Took Fuel Safe Corp