Question

In a certain country, private enterprises provide various goods and services. But the government provides free public transportation and electricity to its citizens. Which type of economy exists in this country?

A.)traditional
B.)mixed
C.)communist
D.)capitalist

Answer 1

The answer is mixed economy (option B)

Step-by-step explanation:

When a government (public sector) and private individuals (private sector) exercise control over an economy, such economy is said to be a mixed economy.

In this kind of economy, the government sets up basic industries, provides social welfare, energy, free transportation e.t.c. On its part, the private sector develops small scale industries and consumer goods industries. Both sectors are regulated by the government which also encourages their growth.

Answer 2

This is an example of a mixed economy. As the government does provide some services for free but also allows for some profit of private companies, this government is not all for-profit nor all non-profit.