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

• A. It eliminates all forms of income inequality.
• B. It ensures that all resources are allocated solely by the government.
• C. It allows for consumer choice and competition, leading to innovation.
• D. It combines government intervention with market forces to provide public goods and services.

Answer: (D)

Verified step by step guidance

1. Understand the definition of a mixed market economy: it is an economic system that combines elements of both free markets and government intervention.
2. Recognize that in a mixed market economy, the government intervenes to provide public goods and services that the private market may underprovide, such as infrastructure, education, and healthcare.
3. Note that the market forces still operate to allow consumer choice and competition, which can lead to innovation and efficient resource allocation.
4. Evaluate the given options by comparing them to the characteristics of a mixed market economy: it does not eliminate all income inequality, nor does it allocate all resources solely by the government.
5. Conclude that the key benefit of a mixed market economy for most citizens is that it combines government intervention with market forces to provide public goods and services, balancing efficiency and equity.