Practicing Success

Target Exam

CUET

Subject

General Test

Chapter

General Knowledge

Topic

Economics

Question:

Who answers the three questions i.e., what to produce, how to produce and for whom to produce in a "Mixed" economic system?

Options:

Government

Market forces of demand and supply

Both 1 and 2

None of the above

Correct Answer:

Both 1 and 2

Explanation:

In a mixed economic system, the government and the market together answer the three questions of what to produce, how to produce and how to distribute what is produced. In a mixed economy, the market will provide whatever goods and services it can produce well, and the government will provide essential goods and services which the market fails to do.