What are the features of mixed economy?
Answers
Answer:
Mark it as brainliest
Yes
Explanation:
Both private and public sectors co-exist
Development and profit is maximised
Answer:
(i) Co-existence of Private and Public Sector:
Under this system there is co-existence of public and private sectors. In public sector, industries like defence, energy, etc., are set up.
(ii) Personal Freedom:
Under mixed economy, there is full freedom of choice of occupation, although consumer does not get complete liberty but at the same time government can regulate prices in public interest through public distribution system.
(iii) Private Property is allowed:
In mixed economy, private property is allowed. However, here it must be remembered that there must be equal distribution of wealth and income. It must be ensured that the profit and property may not concentrate in a few pockets.
(iv) Economic Planning:
In a mixed economy, government always tries to promote economic development of the country. For this purpose, economic planning is adopted. Thus, economic planning is very essential under this system.
(v) Price Mechanism and Controlled Price:
Under this system, price mechanism and regulated price operate simultaneously. In consumer goods industries price mechanism is generally followed.
(vi) Profit Motive and Social Welfare:
In mixed economy system, there are both profit motive like capitalism and social welfare as in socialist economy.
(vii) Check on Economic Inequalities:
In this system, government takes several measures to reduce the gap between rich and poor through progressive taxation on income and wealth. The subsidies are given to the poor people and also job opportunities are provided to them.
(viii) Control of Monopoly Power:
Under this system, government takes huge initiatives to control monopoly practices among the private entrepreneurs through effective legislative measures. Besides, government can also fake over these services in the public interest.
Happy learning! :)