--%>
Assignment Help - homework help

Mixed Economy

Define the term Mixed Economy and also state their advantages and disadvantages?

E

Expert

Verified

Mixed Economy:

Initially, a mixed economy allows personal involvement in fabrication and manufacture which further makes possible sound competition that can lead to generation of revenue. In contrary to this, it also participates to public possession in production and development that can obtain complete benefit of social wellbeing. Additionally, a mixed economy is positioned between a market economy as well as a centrally planned economy. Therefore, it outlines capitalist and socialist facets, and is now and again termed as a "third system.

The sections below mirror the advantages and disadvantages of mixed economy.

There are a number of benefits associated with the mixed economy like it permits competition between suppliers along with rules in position so as to safeguard the community as a whole (Freeman,1989). Moreover, by way of government entities being there in the economy, there prevails an atmosphere of safety among purchasers and sellers and it also aids in upholding an unwavering economy. Additionally, in this type of economy individuals might enter into trade for their ownselves, choose what they would manufacture or put up for sale, and decide their individual prices. Further, business possessors give out taxes, although they obtain the payback of such taxes by means of social plans and other government provisions.

Moving ahead, such economies also enclose disadvantages, taking in the verity that business persons require to discover their own marketplaces for goods, and also they are not under the influence of the taxes they shell out.  Moreover, the merchants would frequently criticize against tax rates being more for the provisions offered. Other disadvantages include ineffective rules that might paralyze aspects of fabrication and absence of cost control supervision that can result in deficiency of products and even downturn.

   Related Questions in Business Economics

  • Q : Meaning of invisible hand according to

    Adam Smith’s opinion of an “invisible hand” powerfully implies the meaning that: (w) pursuit of individual self interest must be controlled. (x) most people lose sight of what’s good for society. (y) most peopl

    		•
  • Q : When productive resources are utilized

    While productive resources are utilized efficiently: (w) prices greatly exceed production costs for current outputs. (x) opportunity costs are at their minimums for all goods. (y) domestic production exceeds the value of foreign output. (z) the value

    		•
  • Q : Cornerstone of typical economic theory

    The cornerstone of typical economic theory derived through the work of Jeremy Bentham was the perception of (i) the wages fund. (ii) natural checks on population. (iii) increasing cost. (iv) utility. (v) surplus value.

    Q : The market system not only accepts

    Explain the statements: The market system not only accepts self-interest as a fact of human existence.

    		•
  • Q : Introduction of the term Cost of capital

    Give a brief introduction of the term Cost of capital?

    		•
  • Q : Explain the term Earnings per share

    Briefly explain the term Earnings per share (or EPS)?

    		•
  • Q : Major type of expenditure at the state

    What is the most important source of revenue and the major type of expenditure at the state level?  

    		•
  • Q : Problem on private resource ownership

    Relative to most of the other countries, the United States encompasses historically relied more greatly on: (1) Public resource ownership and private income distribution. (2) Decentralized decision making and private resource ownership. (3) Exports of textiles, automo

    		•
  • Q : Distinguish between allocative

    Distinguish between allocative efficiency and productive efficiency. Give an illustration of achieving productive, but not allocative, efficiency?

    		•
  • Q : Super committee failure Question: Some

    Question: Some commentators have argued that the failure of the "Super committee" is good thing for the economy?  Do you agree? Answer: The Super committe

    		•