Mixed Economy and its advantages/disadvantages




Mixed economy

  • Some private businesses, driven by profit. Some controlled by government
  • Private: mobiles, cars, computers
  • Essential services: police, fire service, defence, social services. Goods and services which can benefit both consumer and society(merit goods)
  • Taxes to the government
  • Government places limits on the nature of business activity: restricting monopoly, control pollution from factories.

Advantages

  • State provides the essential services
  • Private sector encouraged for profits
  • Competition keeps prices low
  • Consumer choice
  • Inefficient business behavior controlled

 

Disadvantages

  • Heavy taxes reduce incentives to work hard or make profits
  • Less efficient than private sector
  • Excessive control over business activity can add costs and discourage enterprise




Rating 4.40 out of 5


26 Responsesto “Mixed Economy and its advantages/disadvantages”

  1. Wow! This is an splendid interpretation of mixed economy and is simple

  2. neo says:

    This answer is easy to understand and has the advantages and disadvantages clearly explained

  3. kat says:

    This is everything I need to know for school, and its simple and easily explained. Thanks

  4. Bobby Bob says:

    WOW! THIS WEBSITE IS VERY HELPFUL FOR SCHOOL AND ECHONOMICS! THX FOR PUTTING THIS TOGETHER! 🙂

  5. Bobby Bob says:

    🙂 🙂 🙂 ;);)

  6. Justine says:

    Thanks goolge this points is so easer to understand

  7. musheerah says:

    like akash has said its vry use ful 4 children

  8. Esther ovie says:

    Wow!!!…l love it very helpful

  9. Mxolisi Mk Mgilija says:

    mmm thanx this website it so helpful 🙂 🙂 🙂 🙂

  10. guys larry is real ok AND THIS WEBSITE IS V HELPFUL

  11. ibrahim says:

    Waw so helpful thanx

  12. dolores ramos says:

    need the advantages and disadvantages.ty

  13. aaaah what a website, powerful

  14. Okori calvin says:

    This website is more important to students

  15. karinah says:

    Thanks so much for putting this website it’s really helpful

  16. Anny says:

    Answers are too short to get a clear meaning. They should be lengthy and self explanatory.

  17. genius says:

    aaaah its nic l like the

  18. Mariah says:

    Wow!!! This is nice and was looking for this, thanks!!!

  19. fuggie says:

    thank you

  20. disang says:

    good

  21. Isuru says:

    Answers are to the point. Just what is needed.

Leave a Reply