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.


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



  • 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

23 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:


  5. Bobby Bob says:

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  7. musheerah says:

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  11. ibrahim says:

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  12. dolores ramos says:

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  16. Anny says:

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  20. Isuru says:

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