a.

An economic system is a system which determines the price, allocation of resources, and
distribution of goods and services in a given area.

b. In a mixed economics system, both the government and individual business both have the
right for an access on the allocation of resources. The government can allocate resources
such as, police force, fire services, hospital services and many more, which are more
affordable. However, there are also private businesses that allocate resources such as
hospitals, construction and such which are higher in price but provide a better quality.

c. First of all, the government provides goods and services to all the people around the country
or region, so it has a lower price range for them, for the rich people and the poor people to
purchase. It will also be easier if there was one entity running a certain firm, rather than
multiple individuals handling a firm that might come up with something different than the
direction it was supposed to take. The government can also easily fix price mechanisms for
multiple firms, so that the consumers will be satisfied for what they had purchased with a
given amount of money.

d. In order for the correction of market failures, the government might intervene to correct
some of the worst failures of the free economic market system that reduces the social and
economic welfare. In a free economic system, there is a fear that public goods might not be
supplied, demerit goods will be over-supplied and consumed and exploitations of
employees, because of the greediness of money from entrepreneurs. The government who
has the ability to only think about the welfare of the consumers and workers, will step in and
correct those mistakes without fail in order to stabilise the market economy from collapsing.
They will do this by paying for provision of public good by using taxes, or banning the
production of demerit goods, or increasing the price, or introduce strict laws to provide
safety for underpaid workers.