True or False: There is always some degree of government involvement in a mixed economy.

In a mixed economy, there is always some level of government involvement alongside private enterprise. This occurs because mixed economies blend elements of capitalism and socialism, allowing for both private ownership and government regulation. The role of the government can vary significantly, but it typically includes oversight to ensure fair competition, the provision of public goods, and intervention in cases of market failure.

The presence of government involvement is crucial for maintaining economic stability, protecting consumers, and addressing social welfare issues. For instance, regulations may be enacted to limit monopolistic practices, while social programs can support those who are economically disadvantaged. Because these elements are fundamental to the very definition of a mixed economy, asserting that there is always some degree of government involvement is accurate.