Which of the following best describes a mixed economy?

A) Private businesses control all economic decisions.
B) Private businesses have little or no control over economic decisions.
C) Local customs dictate economic decisions.
D) Private businesses control most, but not all, economic decisions.

1 answer

D) Private businesses control most, but not all, economic decisions.

A mixed economy combines elements of both capitalism and socialism. In such an economy, private businesses operate alongside government involvement and regulations, meaning that while private enterprises are significant players in economic decisions, the government also has a role in regulating and guiding the economy.