Merit and demerits of mixed economy

mixed economy ppt

Mixed economy is a planned economy. The public sector gets maximum benefits whereas private sector remains controlled. In certain fields of production, both public and private sectors operate in a competitive spirit. In the same way, the Private Sector cannot be left to develop in its own way.

Mixed economies have a high level of state participation and spending, leading to tax-funded libraries, schools, hospitals, roads, utilities, legal assistance, welfare, and social security. The Benefits of Mixed Economies A mixed economy allows private participation in production while ensuring that society is protected from the full swings of the market.

These factors increase efficiency, initiative, innovation and productivity.

Mixed economic system

According to J. All factors of production work efficiently in the hope of profit. Overview: The Advantages of a Mixed Economy A mixed economy permits private participation in production, which in return allows healthy competition that can result in profit. The Central Government makes economic planning for optimum use of the resources. Systematic plan In a mixed economy, economic activities are carried out as per plan. Conclusion: But the defects of the mixed economy enumerated above are not so acute that they cannot be overcome. The private sector feels jealous of the privileges enjoyed by the public sector. Hence economic fluctuations which are a characteristic feature of a capitalist economy are equally experienced in a mixed economy.

The public and private sectors work in a co-operative manner to attain the social objectives under a common economic plan.

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Merits and Demerits of Mixed Economy