Which of the following is NOT a role of the government in a mixed economy?
A. Complete control over all production decisions
B. Redistribution of income
C. Correction of externalities
D. Provision of public goods
Answer: Option A
Solution (By JKSSB Mock Tests)
In a mixed economy, the government intervenes to provide public goods, correct externalities and redistribute income, but does not completely control all production decisions, which remain partly with the private sector.
Explanation:
The opportunity cost of holding money is the interest that could have been earned by holding bonds or other interest-bearing assets instead of cash.
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