Question

Saudi Arabia has traditionally been an oil-based economy with strong government controls over major economic activities. To diversify the economy, the Saudi government is working to increase the private sector. These efforts focus on telecommunications, power generation, and chemicals. Which economic system is described in this statement? a. Traditional b. Primitive c. Market d. Mixed

Answer 1

Answer:

d. Mixed

Explanation:

Economic system refers to the system adopted by the nation that helps in the economic stability and its organization. The distribution of the resources, means of production, distribution of finished products and the formation of rules regarding these steps are all part of economic system.  

In mixed economic system, government and private sector both plays an important role. Policies are made and implicated by the government sector while the private sector helps in enhancing the production.  

In the given excerpt, the economic system that has been adopted is Mixed economic system.