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JAMB Economics 1986 Question 13

Question 13

Economic Systems

Which of the following statements describes a mixed economy?

  1. A.The government and the private sector interact in solving the basic economic problems
  2. B.The invisible hand solves the basic economic problems
  3. C.The government produces and distributes all goods and services
  4. D.Society answers the 'what', 'how', and 'for whom' questions only through the market system.
Show the answer and explanation

Answer: A (The government and the private sector interact in solving the basic economic problems)

Explanation

In a mixed economy both the government and private individuals take part in deciding what, how and for whom to produce.