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In a ___ Economy, both the government and individuals make decisions about what goods will be produced.

A. Command

B. Market

C. Mixed

D. Traditional

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User Olov
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2 Answers

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The answer is C. Mixed Economy
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User Maryory
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Answer:

C. Mixed

Step-by-step explanation:

In a planned economy (or command economy) only the government acts in the productive sphere. On the contrary, in a market economy, private initiative makes production decisions. In a mixed economy model, firms have the autonomy to produce and market goods and services, as occurs in the market system, but the state also has the pre-extension of producing and marketing, as it does in the planned system.

Thus, the mixed economy model is a mix between the planned model and the market model. In addition to being able to produce, the state must also act as a regulator of the economic system to ensure that the environment is prone to the development of capitalism. Thus we can say that the role of government in a mixed economy is one of producer and regulator. Almost all capitalist economies are to a greater or lesser extent mixed economies, including the US.

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User Mondayguy
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