During The Last Century Capitalism Has Been Contrasted With Simply Planned Economies In Most Of The Developing Countries Like Pakistan Where Mixed Economy System Is Present. Can You Explain It In Context With? 1) Government Honour Ship And Regulation Of Production. 2) Trade. 3) Commerce. 4) Taxation. 5) Money Supply. 6) Physical Infrastructure.

In many of the cases the mixture of capitalism and planed economy is able to perform well because in that case there is a control on the price by the government and there is ample room for private parties also to grow well.

If the government owns an organization that is vital to the growth of the economy, it can regulate the production so that if there is any adverse impact on the economy because of the production of something, the government can stop or at least put a clamp on the production.

When it comes to trade and commerce, there are certain benefits of the phenomenon. The government companies that are big can import materials in large quantity and then small private companies can buy from them.

When it comes to taxation in mixed economy, the government can decide the amount of tax that should be levied and can further invest in the future growth of the country and that include business growth too. With the taxed money the government can invest into the improvement of physical infrastructure also and thus the economy can attain a sustainable growth.

If we talk about money supply, the central bank of the country can regulate that also for the long term growth of the country. If an economy is growing quite well but in some of the sectors the government feels that there is over supply of money. In that case the central bank can raise the cash reserve ratio and can suck certain amount on money from the market. It can release that money also when need arises and thus maintaining balance in the economy.

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