Question

What type of economic system does Europe operate under?

free market economy
socialist economy
planned economy
mixed market economy

Answer 1

Europe operates primarily under a mixed market economy. This system combines elements of both a free market and government intervention. In a mixed market economy, the private sector plays a significant role in economic activity, while the government regulates and provides certain services to ensure social welfare, address market failures, and promote overall economic stability. Different countries in Europe may have varying degrees of regulation and social welfare policies, contributing to the diversity of economic systems across the continent.