The economy in which the government allows freedom of action of all economic units is essentially ________.

a socialist economy

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a mixed economy

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a capitalistic

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none of these

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Solution

The correct option is A a socialist economy
In capitalistic economy, the means of production are owned by the private sectors. Government intervention in any sector is not allowed. All sectors work freely without any restriction imposed by the state.

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Similar questions

Q25. Which of the following statements are correct?

1. A mixed economy refers to market economy with strong regulatory oversight and governmental provision of public goods.

2. A socialist economic system is characterized by social ownership and democratic control of the means of production.

3. Capitalism is an economic system in which capital goods are owned by private individuals.

4. Marxian economics provided a foundation for capitalism.

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