1.1.6 The Mixed Economy Flashcards
What is a mixed economy?
A mixed economy is an economic system that combines elements of both capitalism and socialism.
True or False: In a mixed economy, all resources are owned by the government.
False
What are the two main types of ownership in a mixed economy?
Private ownership and public ownership.
Fill in the blank: Private ownership aims to maximize _____ and generate profit.
wealth
What is the primary aim of public ownership?
To provide public goods and services for the welfare of society.
Multiple Choice: Which of the following is an example of public ownership? A) A privately owned restaurant B) A government-run hospital C) A family-owned farm
B) A government-run hospital
True or False: Private ownership is primarily concerned with social welfare.
False
What is one advantage of private ownership?
Increased efficiency and innovation due to competition.
Fill in the blank: Public ownership often leads to _____ in service provision.
equity
What is a disadvantage of public ownership?
Potential inefficiencies and lack of competition.
Multiple Choice: Which sector is typically associated with private ownership? A) Education B) Transportation C) Retail
C) Retail
What role does government play in a mixed economy?
The government regulates and provides certain services while allowing private enterprises to operate.
True or False: A mixed economy eliminates the need for government intervention.
False
What is a key feature of private ownership?
Individuals or companies own and control resources.
Fill in the blank: Public ownership is often justified by the need for _____ services.
essential
Multiple Choice: Which of the following is NOT a characteristic of a mixed economy? A) Coexistence of private and public sectors B) Complete government control C) Market-driven resource allocation
B) Complete government control
What is the relationship between private and public ownership in a mixed economy?
They coexist and complement each other to balance economic efficiency and social welfare.
True or False: In a mixed economy, both private and public sectors can provide similar goods and services.
True
What is one challenge faced in a mixed economy?
Finding the right balance between private profit motives and public welfare.
Fill in the blank: The aim of private ownership is primarily _____ driven.
profit
