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  Merits of Mixed Economy

Merits of Mixed Economy:

1. Efficient resource utilization:

The resources are employed proficiently as good features of both capitalism and socialism coexist. When there is misallocation of resources, the State manages and regulates it. This makes sure the proficient utilization of resources.

2. Prices are administered:

The prices are not always fixed by forces of demand and supply. In situation of goods that are scarce, the prices are managed by the government and these goods are also rationed.

3. Social Welfare:

In a mixed economy, planning is federal and there is overall well-being. Workers are provided incentives and reward for any innovations. There is social security given to the workers. Dissimilarities of income and wealth are decreased.

 

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