Certification in Supplier Diversity Practice Exam

In a mixed economy, how does resource ownership typically function?

1. All resources are owned by the state

2. All resources are privately owned

3. Resources are shared between state-owned and private entities

4. Resources are owned by cooperatives only

The correct answer is: Resources are shared between state-owned and private entities

In a mixed economy, resource ownership typically functions by allowing resources to be shared between state-owned and private entities. This system incorporates elements of both capitalism and socialism, where the government and private sector both play significant roles in managing economic resources. This arrangement allows for a balance where the state can manage and provide certain essential services or goods that may not be efficiently supplied by the private sector alone, while also enabling private businesses to operate freely in various industries. The coexistence of public and private ownership can foster competition, drive innovation, and ensure that essential services are provided to the population. The other options suggest extremes of ownership that do not characterize a mixed economy; the first option indicates total state control, the second implies complete privatization, and the last focuses solely on cooperatives, which are just one form of collective ownership and do not dominate the landscape of a mixed economy.