Question

________________ economy is an economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources

Answer 1

Answer:

The correct answer to the following question will be "Mixed economy".

Explanation:

A Mixed economy is described in different ways as an economic structure that combines elements of markets along with the elements of socialist economies, free markets with state expansionism, or private enterprise with the social sector.

The key characteristics of the mixed economy are as follows:

• The co-existence of the public and private sectors.
• Private Sector Policy.
• Reduction of wealth and income inequalities.
• The motive of concern for business.

It's an economy where most decisions related to economic derive from the engagement between sellers and buyers in markets, but for which the government plays an important role throughout the distribution of resources.

Therefore, a Mixed economy is the right answer.