A mixed market economy tends to exist under a: A) communist government that provides little regulation.

A mixed market economy tends to exist under a:

A) communist government that provides little regulation.

B) democratic government that provides some regulation.

C) representative government that provides no regulation.

D) socialist government that provides a lot of regulation.

Answer: B) democratic government that provides some regulation.

A mixed market economy is therefore an economic system that is an intermediary one, between the pure market economy and a centrally planned economy. This type of economy is characterized by ownership, by private citizens and companies but the government also intervenes in matters concerning the economy through policies concerning its aspects like labour, and the environment among others and also provides public goods and services. Mixed market economies are mainly present in democratic states where the government strives to provide liberalization of the economy while ensuring that it regulates to meet social requirements that demand it at times. This type of economy is present in many developed countries and enables both business and regulation by the government.