Question

What is true about a mixed economy?

Select one:

a.

For some goods, officials decide how much to produce. For other goods, the market decides.

b.

Officials decide everything about production

c.

Markets decide everything about production, with no one in charge overall

d.

None of these answer choices are true

e.

All of these are true

Answer 1

a. We know that the mixed economy is defined as an economy which comprises the interference of the private entities as well as the government or public enterprises. The control is in both their parts and together they run the economy. Therefore, the statement is true that for some goods, the officials (government) decide what to produce and for some goods, the decision is undertaken by the market.
b. This is an incorrect statement as both the market as well as the officials have the power to take decisions regarding the production and not just the officials.
c. As we know that the system of a mixed economy is run by both the market as well as the officials (government), this statement that only the market decides everything about the production is incorrect.
d. This cannot be a valid option as option a is the correct answer.
e. This option is inapplicable because not all of the above statements are true. Only option a is the correct statement about the mixed economy.