Which of the following best describes a mixed economy?

• A. An economic system based solely on supply and demand with no government intervention.
• B. An economic system in which only private individuals own resources and make all economic decisions.
• C. An economic system where all resources are owned and allocated by the government.
• D. An economic system that combines elements of both market and command economies.

Answer: (D)

Verified step by step guidance

1. Understand the definition of different economic systems: a market economy relies on supply and demand with minimal government intervention, a command economy has government ownership and control over resources, and a mixed economy incorporates features of both.
2. Identify the key characteristics of a mixed economy, which include both private ownership and government intervention in economic decisions.
3. Compare each option given in the problem to these definitions to see which one aligns with the mixed economy concept.
4. Recognize that the option describing an economic system combining elements of both market and command economies best fits the definition of a mixed economy.
5. Conclude that the correct description of a mixed economy is the one that highlights the coexistence of private enterprise and government regulation or ownership.