Question

Which of the following is a government function in mixed capitalism? Provision of a suitable legal framework for the entire system. Income redistribution O Promotion of competition Stabilization of the economy All of the above Question 37 1 pts An example of an economic flow is the number of automobiles sold in a given month. the volume of exports and imports, the amount of gasoline purchased at a gas station. your monthly expenditure on food. all of the above

Answer 1

Which of the following is a government function in mixed capitalism

ans: All of the above

Provision of a suitable legal framework for the entire system- The government in a mixed economy provides for a legal framework within which both the private sector and public sector work in a co-ordinated manner.All economic activities are carried out as per plan of the government.The private sector works under rules and regulations of the government.

Income redistribution- In a mixed economy, government ensures social welfare.By use of progressive taxation, the government is able to tax more the rich sections of the society thus helping in income redistribution.

Promotion of competition- There exists competition between public sector and private sector to ensure efficiency in the economy, thus ensuring social welfare. There exists competition in private sector .The presence of government ensures that the competition is in the welfare of society and it does not lead to exploitation of consumers by various regulations such as price fixing, anti-monopoly ccontrol etc.

Stabilization of the economy-The government in mixed economy ensures economic stabilization.It avoids ups and downs in economy through proper planning and rules and regulations.It eliminates overproduction and underproduction.