25
QuizMultiple Choice

N/A — Exam

Question 25 • Personal Finance

In a mixed market economy, what is a typical way the government can reduce unemployment?

Answer
A
The government can raise taxes to encourage employment.
B
The government can control new factories to provide jobs.
C
The government can create new farm fields to hire workers.
D
The government can pay for projects to create work.

Explanation

A government can reduce unemployment by funding public projects, such as building roads or schools, which hire workers directly and can create jobs with contractors and suppliers. So the correct choice is “The government can pay for projects to create work.” Raising taxes does not typically encourage employment, and controlling factories is not a typical approach in a mixed market economy.

AI-written and checked against the verified answer.

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