Question

In the modern economy of Australia, individuals and businesses decide for themselves what to produce and for whom to produce it. They also decide how to produce goods, but must abide by health and safety regulations set by the government as well as other limitations set by the government. What type of economy is the modern Australian economy?

A.
a pure command economy

B.
a pure market economy

C.
a mixed economy

D.
a traditional economy

Answer 1

C. a mixed economy

Explanation: Individuals and businesses make most production and allocation decisions (market forces) but the government sets regulations and intervenes (health/safety rules and other limits), which is the hallmark of a mixed economy.