Which of the following is a correct statement about a mixed economy?

• A. A mixed economy combines elements of both market and command economies.
• B. In a mixed economy, all resources are owned and allocated by the government.
• C. In a mixed economy, prices are determined solely by government planning.
• D. A mixed economy does not allow private ownership of property.

Answer: (A)

Verified step by step guidance

1. Understand the definition of a mixed economy: it is an economic system that incorporates elements of both market economies (where prices and production are determined by supply and demand) and command economies (where the government has significant control over resources and production).
2. Analyze each statement by comparing it to the characteristics of a mixed economy:
3. - The statement 'A mixed economy combines elements of both market and command economies' aligns with the definition, so it is likely correct.
4. - The statement 'In a mixed economy, all resources are owned and allocated by the government' describes a command economy, not a mixed economy, so it is incorrect.
5. - The statements about prices being determined solely by government planning and no private ownership of property also describe command economies, not mixed economies, so they are incorrect.