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Brrunno [24]
3 years ago
11

Why do economists describe the US economy as a mixed-market economy?

History
2 answers:
Tanya [424]3 years ago
5 0

Explanation:  A mixed economy is a combination or mix of a market economy where the private sector is represented and a command economy that represents the public sector where the parameters of the economy are determined by the government.

In a market economy, all funds are private, without government intervention, and the market is governed by an invisible hand. In a command economy, all means are governmental and it determines the amount, quantity, mode of production, type of service, etc. When it comes to market economy, there is a possibility of monopoly, since all the components are determined by the private entrepreneurs as owners of the assets. The role of government intervention, that is, the influence of the command economy, to prevent the emergence of monopoly, and thus become a mixed economy.

goblinko [34]3 years ago
4 0
Economists describe the US economy as a mixed market economy because there is both private and public involvement in guiding the economy. Mixed economies are economies in which both the government and the private sector are involved in the economy. 
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