Respuesta :
Number one has the lowest government involvement and number four has the highest.
1. Market economy - In a market economy, the government has very little to do with the decisions regarding investment, production and distribution. Instead, these ideas come from the supply and demand that consumers create.
2. Mixed economy - A mixed economy companies private and public enterprises which has some government influence.
3. Socialist economy - A socialist economy is control by the government but still allows small ownership of productions and some say from individuals.
4. Communist economy - Controlled by the government with no influence from the public. Not a democratic society at all.
The set of arrangement regarding the level of government's intervention in economies are as follows -
- Market Economy - The least government intervention
- Mixed economy - Equal intervention from government.
- Socialist economy - more government intervention and less control of public.
- Communist economy - The Greatest involvement of the government.
How does the government intervene in the economies?
The intervention of government in an economy refers to the involvement of government in determining the policies of different types of economy.
Market economy refers to as an economy where the substantial control of the economy is in the hands of the numbers of buyers and sellers present in the market.
Mixed economy refers to an economy where a significant control of the market is equally in the hands of government as well as the buyers and the sellers present in the market.
Socialist economy is an economy where there is greater amount of intervention of the government as the main goal of such economy is welfare of the public.
Communist economy refers to an economy where there is a complete government control, as the democracy does not exist at all in such economy.
Hence, the correct arrangement is as 2-4-3-1 which ranges from the least government involvement to the most involved government in an economy.
Learn more about government involvement in an economy here:
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