Question

Which scenario is the BEST example of how the government would act in a mixed market economy?

The government requires a factory to produce surplus goods for the use of
the military.
The government stops a factory from producing imitations of an expensive
type of purse.
The government allows only two competitors to offer goods for sale on the
country's highways.
The government imposes a limit on the number of television sets that can
be exported annually.

Answer 1

he correct answer is - D) The government allows only two competitors to offer goods for sale on the country's highways.

By allowing only two competitors to offer goods on the highways of the country would mean a situation where an oligopoly will be allowed and developed in certain sector.

Allowing an oligopoly situation on the scene is against the principles of the market economy, as it reduces competition, increases price manipulation, and there's no motivation for the companies to provide better services and constantly advance. So a situation like that is the least likely to be allowed in a market economy to happen.

Explanation: