Question

Which of the following is true about a mixed economy?

1) It contains the least restriction as resource allocation is roughly determined by the law of demand
2) Private enterprise reserves the right to own property and monitor the production and distribution of goods, while the state simply supports competition
3) It creates an environment where little motivation exists to improve customer service
4) Some sectors are privately owned and have the freedom and flexibility of the law of demand, while other sectors are subject to government planning

Answer 1

A mixed economy combines private ownership and government planning.

Step-by-step explanation:

In a mixed economy, some sectors are privately owned and have the freedom and flexibility of the law of demand, while other sectors are subject to government planning.

Private enterprise reserves the right to own property and monitor the production and distribution of goods, while the state simply supports competition. This means that private businesses can make decisions based on market demand, while the government ensures fair competition.

A mixed economy does not create an environment where little motivation exists to improve customer service. In fact, competition in the private sector can lead to companies striving to provide better customer service to attract and retain customers.