Which scenario is the BEST example of how the government would act in a mixed market economy?

A) The government requires a factory to produce surplus goods for the use of the military.

B) The government stops a factory from producing imitations of an expensive type of purse.

C) The government allows only two competitors to offer goods for sale on the country's highways.

D) The government imposes a limit on the number of television sets that can be exported annually.

Question

Social Studies

Rodney Moss

17 July, 02:17

Which scenario is the BEST example of how the government would act in a mixed market economy?

A) The government requires a factory to produce surplus goods for the use of the military.

B) The government stops a factory from producing imitations of an expensive type of purse.

C) The government allows only two competitors to offer goods for sale on the country's highways.

D) The government imposes a limit on the number of television sets that can be exported annually.

+4

Answers (2)

Know the Answer?

Howard Fowler · Answer 1

B) The government stops a factory from producing imitations of an expensive type of purse.

Explanation:

The mixed economy system is an economic system which combines capitalism and socialism, by protecting private property and allowing economic freedom into a certain level. But in this economic system, the government interferes into economic activities in order to achieve social aims and also to prohibit certain things, such as the production of imitations of famous brands.

Precious · Answer 2

B) The government stops a factory from producing imitations of an expensive type of purse.

Explanation:

The government intervenes in the economy when the market is not able, on its own to sustain the optimal economic functioning or can't solve the problems caused by the same market. The government in this case, will prevent competition from imitation against an expensive brand. That's because of the capacity of being the regulator.