What is a mixed economy?
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What is a mixed economy?
A mixed economy is an economic system that combines elements of both free market capitalism and government intervention.
Define the term government intervention.
Government intervention refers to the involvement of the government in economic affairs through policies, regulations, and other measures.
How are levels of government categorised?
Government roles are categorised into local, national (macroeconomic), and international levels of intervention.
State the meaning of local government.
Local government refers to the administrative bodies responsible for delivering public services within a specific geographic area, such as a town or region.
Define the term fiscal policy.
Fiscal policy refers to the government's policies related to taxation, spending, and borrowing to influence the economy.
What does monetary policy mean?
Monetary policy refers to the actions taken by a central bank to control the supply of money and interest rates in an economy.
State the meaning of supply-side policy.
Supply-side policy refers to government policies aimed at increasing the productive capacity and efficiency of an economy.
How do governments intervene internationally?
Governments intervene internationally through measures such as exchange rate interventions and protectionism to influence international trade and competitiveness.
Define exchange rate intervention.
Exchange rate intervention is the process of a central bank buying or selling its own currency in the foreign exchange market to influence the exchange rate.
What is protectionism?
Protectionism refers to government policies that restrict international trade to protect domestic industries from foreign competition.
True or False?
All economies are mixed economies.
True.
With the exception of North Korea, every economy in the world is a mixed economy with varying degrees of government intervention.