A mixed economy ?
Correct answer: D. Has market forces and government intervention
- A. Has supply but not demand
- B. Has demand but not supply
- C. Has supply and demand
- D. Has market forces and government intervention
Explanation
A mixed economy combines market forces with government intervention in allocating resources. Supply and demand exist in all market-based economies, so option c is too general.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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