In a mixed economy
A)all economies choose the same mix of private and public involvement in the economy.
B)the government is more important than the private sector in generating output.
C)there is some government influence over the workings of the free market.
D)all of the above.

Question

Quizplus · Accepted Answer

In a mixed economy, there is a combination of free-market elements and some government intervention or regulation to address market failures or promote certain objectives such as equity or social stability. This means that while the private sector still plays a significant role in generating output, the government has some influence over the workings of the economy. However, this does not necessarily mean that the government is more important than the private sector in generating output or that all economies choose the same mix of private and public involvement. Therefore, choices A, B, and D are incorrect.

In a Mixed Economy