Final answer:
Power refers to the ability to influence or control others, while authority refers to the legitimate right to exercise power. In a mixed economy, power can be seen in the hands of those who own businesses or hold key positions in the government, while authority is derived from a formal position or leadership role. Both power and authority impact the functioning of the economy and resource allocation in a mixed economic system.
Step-by-step explanation:
Power refers to the ability or capacity to influence or control others. It can be obtained through various means, such as wealth, position, or physical strength. In a mixed economy, power can be seen in the hands of those who own businesses or hold key positions in the government.
Authority, on the other hand, refers to the legitimate or legal right to exercise power and make decisions. It is often derived from a formal position or leadership role. In a mixed economy, authority can be seen in the government's ability to regulate economic activities and create policies that shape the functioning of both the private and public sectors.
While power and authority are closely related, they differ in terms of their sources and legitimacy. Power can be held by individuals or groups, based on their influence or control, whereas authority is granted through legal or social systems. Both power and authority play significant roles in shaping the economy and governing the allocation of resources in a mixed economic system.
Learn more about differences between power and authority in a mixed economy