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What are advantages of a mixed market economic system?

(Select all that apply.)

Competition lowers prices and increases choices.
The private sector is encouraged to make profits.
The government provides essential services.
Low taxes reduce income inequality.

1 Answer

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I think that the advantages of a mixed market economic system

are: competition lowers prices and increases choices and the government provides essential services.

The mixed economy system combines government planning with the use of the free market. In the mixed economy, just as in the market economy, people and firms in the private sector own scarce resources with the aim of making as much money as possible. However, in mixed economies the government also own some scarse resources to produce what they think their country needs.

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