Capitalism socialism mix economics their advantage disadvantage
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ADVANTAGES
Producers and consumer have sovereignty to choose what to produce and what to consume but production and consumption of harmful goods and services may be stopped by the government.Social cost of business activities may be reduced by carrying out cost-benefit analysis by the government.As compared to Market economy, a mixed economy may have less income inequality due to the role played by the government.Monopolies may be existing but under close supervision of the government.
DISADVANTAGES
Consumers cannot choose and only those goods and services are produced which are decided by the government.Lack of profit motive may lead to firms being inefficient.Lot of time and money is wasted in communicating instructions from the government to the firms.
Producers and consumer have sovereignty to choose what to produce and what to consume but production and consumption of harmful goods and services may be stopped by the government.Social cost of business activities may be reduced by carrying out cost-benefit analysis by the government.As compared to Market economy, a mixed economy may have less income inequality due to the role played by the government.Monopolies may be existing but under close supervision of the government.
DISADVANTAGES
Consumers cannot choose and only those goods and services are produced which are decided by the government.Lack of profit motive may lead to firms being inefficient.Lot of time and money is wasted in communicating instructions from the government to the firms.
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