Multiple choice

Controlled price system works under __________.

  1. capitalism

  2. socialism

  3. mixed economy

  4. none of these

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Mixed economies feature both market forces and government intervention in price determination. Controlled price systems operate through mechanisms like price ceilings, floors, subsidies, and minimum support prices that governments use to stabilize markets, protect producers/consumers, and ensure social welfare. Pure capitalism relies on free markets, while socialism features extensive state control.