Question

In a mixed economy how prices are regulated by the Government?

• A. price control
• B. rationing
• C. distribution control
• D. all the three

Answer 1

Answer: (D)

all the three

Prices in the market are regulated by the government in the following ways:

Price control: a government regulation establishing a maximum price to be charged for specified goods and services, especially during periods of war or inflation.

Rationing: allowing a person to take a fixed quantity of the goods irrespective of his needs and wants.

Distribution control: government decides that how a good will be distributed among people and in what proportion.