Which of the following is NOT a role of the government in a mixed economy?
A. Redistribution of income
B. Complete control over all production decisions
C. Provision of public goods
D. Correction of externalities
Answer: Option B
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:
Capital formation refers to the net addition to the existing stock of capital goods such as machinery, buildings and equipment in an economy.
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