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Mixed Economy

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Mixed Economy
A mixed economy is an economic system that incorporates aspects of more than one economic system. This usually means an economy that contains both privately-owned and state-owned enterprises or that combines elements of capitalism and socialism, or a mix of market economy and planned economy characteristics. This system overcomes the disadvantages of both the market and planned economic systems.
Features
* Resources are owned both by the government as well as private individuals. i.e. co-existence of both public sector and private sector. * Market forces prevail but are closely monitored by the government.
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.

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What Are The Advantages And Disadvantages Of Mixed Economy?
The mixed economy refers to such an economic system wherein two the sector exist and function for achieving national objectives. The two sectors are the public sector and private sector. Both these sectors exist and function for achieving national objectives. Both these sectors make the economic system of the country. In fact the mixed economy is the happycombination of private enterprise with government enterprise on the one side there is freedom of enterprise, private ownership and profit earning. On the other side there is governmentguidance and control so as to stop evil economic, pressures. In order to remove the effects of the

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