Which of the following is a disadvantage of a mixed market economy for most citizens?

• A. Citizens have no freedom to choose what to consume or produce.
• B. Government intervention can lead to inefficiencies and bureaucratic delays.
• C. Market forces are completely ignored in resource allocation.
• D. There is no opportunity for private ownership of resources.

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of a mixed market economy. It combines elements of both market economies (where supply and demand determine resource allocation) and planned economies (where the government has significant control). Citizens typically have some freedom to choose consumption and production.
2. Step 2: Analyze each option in the context of a mixed market economy. For example, 'Citizens have no freedom to choose what to consume or produce' is more characteristic of a command economy, not a mixed market economy.
3. Step 3: Recognize that in a mixed market economy, market forces are not completely ignored; rather, they coexist with government intervention. So, the option stating 'Market forces are completely ignored in resource allocation' does not accurately describe a mixed market economy.
4. Step 4: Consider the role of private ownership. Mixed economies usually allow private ownership alongside public ownership, so 'There is no opportunity for private ownership of resources' is incorrect for a mixed market economy.
5. Step 5: Identify that government intervention can sometimes cause inefficiencies and bureaucratic delays, which is a known disadvantage of mixed market economies. This aligns with the correct answer provided.