Asked by Ariana Chapman on May 05, 2024
Verified
A nation which has many active free markets in which profits motivate sellers and also regulatory bureaucracies would be an example of
A) a free market.
B) a centrally planned economy.
C) a mixed economy.
D) an equitable economy.
Free Markets
Economic systems where prices for goods and services are determined by the open market and consumers, with minimal government intervention.
Regulatory Bureaucracies
Government agencies tasked with enforcing rules and regulations to ensure the safety, fairness, and efficiency of markets and industries.
Mixed Economy
An economic system combining elements of capitalism and socialism, featuring both private enterprise and government intervention in the market.
- Identify the pivotal importance of mixed economies and their unique characteristics.
Verified Answer
BD
Bianca DreginMay 10, 2024
Final Answer :
C
Explanation :
A mixed economy is characterized by the presence of both free market mechanisms and regulatory bureaucracies. In a mixed economy, private business and government coexist and play important roles in determining the allocation of resources and distribution of goods and services. Therefore, this option is the most appropriate answer to the given question. A free market (A) would not have regulatory bureaucracies, whereas a centrally planned economy (B) would not have active free markets. An equitable economy (D) does not accurately describe the economic system being described in the question.
Learning Objectives
- Identify the pivotal importance of mixed economies and their unique characteristics.