What are the five goals of a mixed economy?

What are the five goals of a mixed economy?

• A. Growth, Taxation, Consumption, Equity, Innovation
• B. Full employment, stability, economic growth, efficiency, and equity
• C. Employment, Supply, Regulation, Growth, Inflation
• D. Stability, Equity, Trade, Regulation, Innovation

Answer: (B)

A mixed economy seeks to balance the benefits of a market economy with the welfare objectives of a planned economy. The correct answer identifies five key goals that are essential for the functioning and success of such an economic system: full employment, stability, economic growth, efficiency, and equity. Full employment refers to the optimal level of employment in the economy, where everyone who is willing and able to work can find a job. Stability involves maintaining consistent economic performance without excessive volatility, helping to ensure that markets function smoothly. Economic growth is vital as it reflects the increase in the production of goods and services, thus improving the standard of living over time. Efficiency signifies the optimal allocation of resources to maximize output and minimize waste. Lastly, equity addresses the fair distribution of wealth and resources within society, which is crucial for mitigating inequalities that can arise within a market framework. Each of these goals works together to ensure that a mixed economy can function effectively, balance various economic forces, and promote the well-being of its citizens. Other options might include different sets of factors, but they do not collectively capture the fundamental objectives of a mixed economy as comprehensively as this selection.

A mixed economy seeks to balance the benefits of a market economy with the welfare objectives of a planned economy. The correct answer identifies five key goals that are essential for the functioning and success of such an economic system: full employment, stability, economic growth, efficiency, and equity.

Full employment refers to the optimal level of employment in the economy, where everyone who is willing and able to work can find a job. Stability involves maintaining consistent economic performance without excessive volatility, helping to ensure that markets function smoothly. Economic growth is vital as it reflects the increase in the production of goods and services, thus improving the standard of living over time. Efficiency signifies the optimal allocation of resources to maximize output and minimize waste. Lastly, equity addresses the fair distribution of wealth and resources within society, which is crucial for mitigating inequalities that can arise within a market framework.

Each of these goals works together to ensure that a mixed economy can function effectively, balance various economic forces, and promote the well-being of its citizens. Other options might include different sets of factors, but they do not collectively capture the fundamental objectives of a mixed economy as comprehensively as this selection.