Which statement best describes the role of government in a mixed economy?
1) it controls all decisions about business activities, including profit levels.
2) it forms companies and then allows individual managers to run them.
3) it follows a strict policy of laissez-faire.
4) it regulates businesses when the public interest is involved.
Dori the answer is 1
The statement that best describes the role of government in a mixed economy is option 4: "it regulates businesses when the public interest is involved."
In a mixed economy, there is a balance between government intervention and individual economic freedom. The government plays a significant role in regulating and overseeing business activities to ensure that they are conducted in a way that benefits the public interest. This means that when businesses engage in practices that may harm consumers, employees, or the environment, the government steps in to set standards, enforce regulations, and protect the public from potential harm.
To arrive at this answer, you can understand the concept of a mixed economy and the different roles of the government in various economic systems. Additionally, knowledge of government regulations and their purpose in protecting the public interest would be helpful in making this determination.
I think is 2
No. 2 is not right.
The U.S. government does not form companies.