Which of the following is NOT a characteristic of a mixed economy?

A mixed economy is defined by the coexistence of both private and public sectors, integrating elements of capitalism and socialism. This means that in a mixed economy, businesses can operate in a free market, while the government also plays a significant role in regulating or controlling certain aspects of the economy. Therefore, the participation of both public and private sectors is a fundamental characteristic of mixed economies.

Market-driven pricing mechanisms are also an essential aspect of a mixed economy. Prices generally reflect supply and demand, allowing for flexibility and responsiveness to changes in the market. While the government may intervene in some sectors, the overall price dynamics are primarily determined by market forces.

The coexistence of competition and monopoly within mixed economies highlights the diversity of structures that can exist in the market. While some industries may be dominated by a few large firms (monopoly), others may foster competitive markets, creating a balance between these two extremes.

On the other hand, the notion that a mixed economy features government regulation of all economic activities does not align with its characteristics. Instead, while the government does regulate certain sectors, it does not control every aspect of the economy, allowing for private enterprise and market forces to operate alongside government intervention. Thus, the statement that all economic activities are regulated by the government is