Article / Finance and Investing
Qais Zahir , Student (MBA), Afghanistan
Economic system in which both the private enterprise and a degree of state monopoly coexist.
Economic system in which both the private enterprise and a degree of state monopoly (usually in public services, defense, infrastructure, and basic industries) coexist. All modern economies are mixed where means of production are shared between the private and public sectors. Also called dual economy.
Capitalist economy is owned and controlled by the individuals; socialist economy is controlled by the states. Whereas mixed economy is controlled by the individuals with the help of the government.
A mixed economy has both a strong public and private sectors. Industry is mostly owned by private owners but there is also a strong role for the government in planning and regulation.
In a mixed economy, there is the gain of low general price level which ultimately leads to increased production and which may generate more employment capacity.
In brief we can say:
• Optimal utilization of a nation's resources.
• A relatively wider tax base.
• Consumers are protected from consumption of harmful products.
• A considerable degree of consumer sovereignty.
• High quality products and services due to compotation.
• More equal distribution/allocation of resources.
• Relatively stable prices.
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