Economics Mixed Economy Questions
A mixed economy addresses market failures through government intervention and regulation. The government plays a role in correcting market failures by implementing policies such as taxation, subsidies, and regulations to ensure fair competition, protect consumers, and provide public goods and services. Additionally, the government may also intervene to address externalities, such as pollution, by imposing taxes or setting emission standards. By actively participating in the economy, a mixed economy aims to mitigate market failures and promote overall economic stability and welfare.