Question

explain types of economy with merit and demerits

Answer 1

around a square pool there is a footpath of width 2m. if the area of the footpath is 7/9 times that of the pool. find ar...
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Answer 2

Merits of Mixed Economy:
There are several advantages of mixed economy which are as below:

(i) Encouragement to Private Sector:
The most important advantage of mixed economy is that it provides encouragement to private sector and it gets proper opportunity to grow. It leads to increase in capital formation within the country.

(ii) Freedom:
In a mixed economy, there is both economic and occupational freedom as found in capitalist system. Every individual has a liberty to choose any occupation of his choice. Similarly, every producer can take decisions regarding production and consumption.

(iii) Optimum Use of Resources:
Under this system, both private and public sectors work for the efficient use of resources. Public sector works for social benefit while private sector makes the optimum use of these resources for maximisation of profit.

(iv) Advantages of Economic Planning:
In the mixed economy, there are all advantages of economic planning. Government takes measures to control economic fluctuations and to meet other economic evils.

(v) Lesser Economic Inequalities:
Capitalism enhances economic inequalities but under mixed economy, inequalities can easily controlled by the efforts of government.

(vi) Competition and Efficient Production:
Due to competition between both private and public sectors, the level of efficiency remains, high. All factors of production work efficiently in the hope of profit.