राइट बेनिफिट्स एंड लिमिटेशन ऑफ मिक्स इकोनामी
Answers
Explanation:
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.
(vii) Social Welfare:Under this system, the main priority is given to social welfare through effective economic, planning. The private sector is controlled by the government. Production and price policies of private sector are determined to achieve maximum social welfare.
(viii) Economic Development:
Under this system, both government and private sector join their hands for the development of socio-economic infrastructures, Moreover, government enacts many legislative measures to safe guard the interests of the poor and weaker section of the society. Hence, for any underdeveloped country, mixed economy is a right choice.