Leaving Certificate Business Definitions Practice Test 2026 – Full Exam Prep

A mixed economy is the system where private enterprise provides some goods and the state provides others. It blends market activity with government intervention, so private firms create many goods while the government supplies public services such as education or healthcare and may regulate or subsidize areas to address market failures or equity concerns. The other terms don’t describe a system: “an economy” is too broad, “interest rates” are monetary policy tools, and “the factors of production” are the resources used to make goods.