Most of the world's economies are mixed economies because _________.
A) a cartel of powerful transnational firms demands it.
B) the market system of allocation is always best.
C) the command system of allocation is always best.
D) government intervention in an overall market system exists because markets fail when there is market power, a great deal of inequality, pollution externalities, or public goods.

Question

Quizplus · Accepted Answer

Mixed economies exist because government intervention is necessary to address market failures, such as market power, inequality, pollution externalities, and public goods. The pure market system may not be able to efficiently allocate resources in these situations. However, government intervention in the economy varies depending on the country and can range from extensive to limited.

Most of the World's Economies Are Mixed Economies Because _________