Which system describes an economy where government and individuals own factors of production?

Which system describes an economy where government and individuals own factors of production?

• A. Market Economy
• B. Traditional Economy
• C. Command Economy
• D. Mixed Economy

Answer: (D)

Ownership of production resources shapes how decisions are made in an economy. When both the government and individuals own factors of production, the system blends market signals with public control, which is a mixed economy. In a market economy, private ownership dominates and government involvement is limited. In a command economy, the government owns the means of production and directs what gets produced. In a traditional economy, decisions follow long-standing customs and traditions. The scenario you described—ownership by both the government and individuals—fits the idea of a mixed economy, where markets operate alongside government intervention, regulation, and public services.

Ownership of production resources shapes how decisions are made in an economy. When both the government and individuals own factors of production, the system blends market signals with public control, which is a mixed economy.

In a market economy, private ownership dominates and government involvement is limited. In a command economy, the government owns the means of production and directs what gets produced. In a traditional economy, decisions follow long-standing customs and traditions. The scenario you described—ownership by both the government and individuals—fits the idea of a mixed economy, where markets operate alongside government intervention, regulation, and public services.