What is one benefit of a mixed economy over a pure market economy?

Question

A.
In a mixed economy, the market determines all prices and goods are produced as efficiently as possible.

B.
In a mixed economy, taxes are often very low because the government does not provide any public goods.

C.
In a mixed economy, the government is able to allocate all resources and make sure that they are used efficiently.

D.
In a mixed economy, government regulations can reduce the negative effects of business activities such as pollution.

Answer 1

D. In a mixed economy, government regulations can reduce the negative effects of business activities such as pollution.

This statement highlights a key benefit of a mixed economy, where government intervention can help mitigate market failures and protect the environment, addressing issues that may be overlooked in a purely market-driven system.