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Which of the fllowing is a correct shatement about a miked econcomy? A. In a mied economk all economic decisions are made in markels. 8. In a miked econcmy mot eccocome checicions are made in markels but the government plays a significant role in the allocation of rescurces C. ma mixed economy the government makes all economic decikions, D. In a mied economy, mot economic decisions are made by the govermment but markels plays a significant role in the allocation of rescurces

Ask by Cook Smith. in the United States
Feb 03,2025

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Answer

In a mixed economy, most decisions are made in markets, but the government also plays a big role in managing resources.

Solution

To determine the correct statement about a mixed economy, let's analyze each option: A. In a mixed economy, all economic decisions are made in markets. - This statement is incorrect because a mixed economy combines elements of both market and planned economies, meaning not all decisions are made in markets. B. In a mixed economy, most economic decisions are made in markets, but the government plays a significant role in the allocation of resources. - This statement is correct. A mixed economy typically allows for market-driven decisions while the government intervenes to regulate and allocate resources as needed. C. In a mixed economy, the government makes all economic decisions. - This statement is incorrect because, in a mixed economy, both the market and the government play roles in decision-making. D. In a mixed economy, most economic decisions are made by the government, but markets play a significant role in the allocation of resources. - This statement is incorrect because it reverses the roles; in a mixed economy, most decisions are made in markets, not by the government. Based on this analysis, the correct statement is: **B. In a mixed economy, most economic decisions are made in markets, but the government plays a significant role in the allocation of resources.**

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In a mixed economy, the magic truly happens as it cleverly combines both market forces and government intervention! While private individuals and businesses make most economic decisions through supply and demand, the government steps in to regulate, ensure fairness, and provide public goods. Think of it as a dynamic duo working together for the greater good of the economy! A fun fact about mixed economies: they are the most common type of economic systems around the world! This approach allows countries to enjoy the benefits of free markets while still addressing inequalities and market failures. So, whether it’s the US, France, or India, most nations have found their sweet spot in this balanced framework!

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