How does the government of a republic typically shape its economy?

How does the government of a republic typically shape its economy?

A) The government allows citizens to own private businesses.

B) The government blocks the ownership of personal property.

C) The government owns all homes and other forms of housing.

D) The government controls factories and other forms of production.

Answer: The correct options are A and D.

In a republic, that is, if the government has some influence on the economy this method is most commonly based on a blend of Capitalism and socialism. The means and ways of doing business and engaging in entrepreneurial activity are partially controlled by the citizens through their right to own private businesses and companies (option A); however, the government retains a major influence in managing significant industrial and manufacturing facilities and other forms of production (option D). This kind of economic system is also called a mixed economy, and it combines the freedom of private capital and strategic planning and state ownership of some industries. Different states may own or have a strict regulation over sectors thought to be strategic and valuable to the nation such as energy, transport or defence industries whereas other sectors may have limited governmental interference and restrictions but with the force of free market elements.