A mixed economic system is an economic system that has a combination of a market economy, allowing for the private ownership of capital, and a command economy, which government intervenes to protect the public interest. Detailed Explanation:A mixed economic system blends characteristics of the command and market economic systems. Some governments, like the United States, have a bias in favor of a market economy, but the US’s government still imposes regulations and has a tax structure to try to redistribute income to the poor. Other countries, like China, lean toward the command economy, but during the past two decades the Chinese government has stepped up efforts to encourage private investment. There are two types of mixed economies: In one type the ownership of the means of production i.e., farms and factories is owned and controlled by the private sector and the Government merely controls and regulates the functioning of the private sector. In the second type the government directly participates in productive enterprise side by side with private enterprise. The government sets up industries of its own and invests its own capital and purchases or hires the productive resources and takes the risk of profit or loss like an ordinary entrepreneur. There are also Joint Sector which is shared both by Private and the Public Sector. The U.S.A. and the U.K. are prominent examples of first type of mixed economy while India represents the second type of mixed economy.
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AuthorMr. Burt... social and English teacher. Archives
June 2018
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