In the mixed economya)economic problems are solved by the government and market.b)economic decisions are made by the private sector and free marketc)economic allocation is achieved by the invisible hand.d)economic questions are solved by government departmentsCorrect answer is option 'A'. Can you explain this answer?

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In the mixed economy

a)
economic problems are solved by the government and market.
b)
economic decisions are made by the private sector and free market
c)
economic allocation is achieved by the invisible hand.
d)
economic questions are solved by government departments

Correct answer is option 'A'. Can you explain this answer?

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In the mixed economya)economic problems are solved by the government a...

The market economy helps with solving the economic problem by providing a mechanism for deciding what, how and for whom production will take place.

In a free market system consumers are the ones to determine the allocation of resources. Profits acts like a signal for what is to be produced. For instance if firms are gaining excellent profit it means that consumers are willing to buy that product whereas if the firms are producing very low or no profit at all it means that consumers aren’t interested in the product anymore.

The decision of lowering prices to beat other firms in order to gain profit is how the firms decide to produce. It results in productive efficiently because producers make products at the lowest prices possible in order to survive in the market.

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Features of a Mixed Economy:A mixed economy is an economic system that combines elements of both a market economy and a planned economy. It incorporates features of both private enterprise and government intervention. The correct answer is D, as all of the following features are characteristic of a mixed economy:1. Planned economy:A mixed economy includes elements of a planned economy, where the government plays a role in guiding and regulating economic activities. It formulates economic plans and policies to ensure the efficient allocation of resources and to promote economic stability.2. Dual system of pricing:In a mixed economy, there exists a dual system of pricing, which means that both market prices and government-set prices coexist. While market forces determine prices for most goods and services, the government may intervene to regulate prices in certain sectors to protect consumers or promote social welfare.3. Balanced regional development:Another characteristic of a mixed economy is the emphasis on balanced regional development. The government intervenes to ensure that economic growth and development are not concentrated in specific regions or industries but are spread across different regions and sectors. This helps to reduce regional disparities and promote overall economic stability and social welfare.Benefits of a Mixed Economy:A mixed economy offers several benefits due to its combination of market forces and government intervention. Some of these benefits include:1. Economic efficiency:By incorporating market mechanisms, a mixed economy allows for resource allocation based on supply and demand, which promotes economic efficiency. Market forces encourage competition, innovation, and productivity, leading to higher levels of economic growth.2. Social welfare:Government intervention in a mixed economy enables the provision of public goods and services that may not be adequately provided by the market alone. This includes areas such as healthcare, education, infrastructure, and social security, ensuring a certain level of social welfare and equity.3. Stability and regulation:The government's role in a mixed economy helps to maintain economic stability through macroeconomic policies such as fiscal and monetary measures. It also regulates certain sectors to prevent market failures, protect consumer rights, and ensure fair competition.Conclusion:A mixed economy combines the advantages of both market forces and government intervention. It allows for economic efficiency, social welfare, and stability. The features of a mixed economy include elements of a planned economy, a dual system of pricing, and balanced regional development. These features work together to create a system that promotes both economic growth and social welfare.

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Can you explain the answer of this question below:In a capitalist economy, allocation of resources is done by:A:ProducersB:GovernmentC:PlannersD:Price mechanismThe answer is d.

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In the mixed economya)economic problems are solved by the government and market.b)economic decisions are made by the private sector and free marketc)economic allocation is achieved by the invisible hand.d)economic questions are solved by government departmentsCorrect answer is option 'A'. Can you explain this answer?

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