Which statement best describes a mixed market economy?

Which statement best describes a mixed market economy?

A) Consumer intervention in economic choices is strictly forbidden.

B) The government determines economic choices and makes most decisions.

C) The decisions made by producers and consumers drive all economic choices.

D) Producers and consumers make some economic choices while the government makes others.

Answer: D) Producers and consumers make some economic choices while the government makes others.

A hybrid market economy is therefore an economic system that features both a free market economy and a command economy. In this type of economy, the decisions are made by individual agents, the business people/ companies (producers) the people (the consumers) and the government.

Producers and consumers are also free to make many economic decisions that include choices of what to produce or what to consume but the government also fixes some degree of certain parts of the economy. Further, the government can intervene in the market to encourage social well-being, correct market failures, regulate the economy or other policy considerations.

In a mixed market economy, the government may engage in one or more of the roles of intervening in the economy by setting the rules and regulations, as well as being involved in the provision of public goods and services, fiscal and monetary policies, and promoting of competition. Still, the levels of government interventions in mixed market economies differ in some ways.