Which of the following are two key characteristics of mixed economies?

• A. All resources are owned by the government
• B. Private and public sectors coexist
• C. Prices are determined solely by government decree
• D. Economic decisions are made only by individual consumers

Answer: (B)

Verified step by step guidance

1. Understand the definition of a mixed economy: it is an economic system that combines elements of both market economies and planned economies.
2. Identify the role of the private sector in a mixed economy, which involves individuals and businesses owning resources and making economic decisions.
3. Identify the role of the public sector in a mixed economy, where the government owns some resources and intervenes in economic activities to regulate or provide public goods.
4. Recognize that in a mixed economy, prices are generally determined by a combination of market forces and government intervention, not solely by government decree.
5. Conclude that the coexistence of private and public sectors is a key characteristic of mixed economies, distinguishing them from purely market or purely planned economies.