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In a mixed economy, both free-market and regulatory forces are at work. Some see these forces as being at odds with each other; others feel that the economy works at its peak when both forces are working together. Whatever you believe, many countries, including the United States, have both systems at work simultaneously, and the balance between the two dictates how the economy, overall, will trend.
In a free-market economy, balance is maintained strictly by market factors. There is little or no regulation - it is a self-policing group of people and businesses. Sometimes this works, but as 2008 is showing, sometimes it doesn’t. Especially in a market-based economy, where people want to make a profit, some unscrupulous folks may enhance their own profit margin at the expense of others, such as the consumer. The tendency toward profit may weaken the self-policing aspects, and the consumer may not receive the best deal.
In a mercantile or socialist economy, the economy is controlled, to some degree, by the government. In a socialist economy, the government controls all aspects of the economy as a fundamental part of its structure; in a mercantile economy, the government controls some or most aspects of the economy for “the good of the economy”. While the United States is commonly referred to as having a capitalist or market economy, in reality it is a mixed economy, since the government does have some say in setting regulation.
The advantages of a mixed economy are many. Depending on the ratio of capitalistic elements to socialist or mercantile elements, there are many freedoms in a mixed economy. People may go into business for themselves, decide what they will produce or sell, and set their own prices. Business owners and merchants pay taxes, but they reap the benefits of those taxes through social programs, roads and other infrastructure elements, and other government services.
However, mixed economies also have disadvantages, including the fact that businesspeople need to find their own markets for products, and that they are not in control of the taxes they pay. Merchants will often complain of tax rates being too high for the services provided.
Most economies today have moved to some variation of a mixed economy, though the balance toward a socialist, mercantile, or free-market economy can vary widely. In fact, most economies are in flux, moving from more regulated to less regulated over time, and sometimes swinging back in the other direction. But another strength of a mixed economy is that the balance can be altered to suit changing conditions, so mixed economy markets should endure for a long time to come.
In a free-market economy, balance is maintained strictly by market factors. There is little or no regulation - it is a self-policing group of people and businesses. Sometimes this works, but as 2008 is showing, sometimes it doesn’t. Especially in a market-based economy, where people want to make a profit, some unscrupulous folks may enhance their own profit margin at the expense of others, such as the consumer. The tendency toward profit may weaken the self-policing aspects, and the consumer may not receive the best deal.
In a mercantile or socialist economy, the economy is controlled, to some degree, by the government. In a socialist economy, the government controls all aspects of the economy as a fundamental part of its structure; in a mercantile economy, the government controls some or most aspects of the economy for “the good of the economy”. While the United States is commonly referred to as having a capitalist or market economy, in reality it is a mixed economy, since the government does have some say in setting regulation.
The advantages of a mixed economy are many. Depending on the ratio of capitalistic elements to socialist or mercantile elements, there are many freedoms in a mixed economy. People may go into business for themselves, decide what they will produce or sell, and set their own prices. Business owners and merchants pay taxes, but they reap the benefits of those taxes through social programs, roads and other infrastructure elements, and other government services.
However, mixed economies also have disadvantages, including the fact that businesspeople need to find their own markets for products, and that they are not in control of the taxes they pay. Merchants will often complain of tax rates being too high for the services provided.
Most economies today have moved to some variation of a mixed economy, though the balance toward a socialist, mercantile, or free-market economy can vary widely. In fact, most economies are in flux, moving from more regulated to less regulated over time, and sometimes swinging back in the other direction. But another strength of a mixed economy is that the balance can be altered to suit changing conditions, so mixed economy markets should endure for a long time to come.
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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 happy combination 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 government guidance and control so as to stop evil economic, pressures. In order to remove the effects of the capitalistic economy, mixed economy has been introduced. It prevails in most of the countries of the world.
ADVANTAGES
The mixed economy is helpful in increasing national production in the country. Both public and private sectors work hard to bring about more production. The problems created by free enterprise and too much public control are solved through mixed economy. It provides freedom of enterprise ownership and profit earning as well as social welfare and political freedom. And all the national recourses are utilized under mixed economy.
DISADVANTAGES
Mixed economy is half way house. It is not helpful in achieving optimal use of national resources. The mixed economy suffers from the drawbacks of both the capitalism and the socialism. Mixed economy seldom achieved progress. It suffers from continues back wardness. Under mixed economy wastage of different types occurs in the economy.
ADVANTAGES
The mixed economy is helpful in increasing national production in the country. Both public and private sectors work hard to bring about more production. The problems created by free enterprise and too much public control are solved through mixed economy. It provides freedom of enterprise ownership and profit earning as well as social welfare and political freedom. And all the national recourses are utilized under mixed economy.
DISADVANTAGES
Mixed economy is half way house. It is not helpful in achieving optimal use of national resources. The mixed economy suffers from the drawbacks of both the capitalism and the socialism. Mixed economy seldom achieved progress. It suffers from continues back wardness. Under mixed economy wastage of different types occurs in the economy.
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I agree with you diyakhan. After careful study of the different types of economic systems around the world, I have also arrived at the same conclusions regarding the mixed market economies. Good answer, and thanks for posting.
Guest
commented 2 years ago
very good analysis
Really helpful
Guest
commented 12 months ago
ADVANTAGES
The mixed economy is helpful in increasing national production in the country. Both public and private sectors work hard to bring about more production. The problems created by free enterprise and too much public control are solved through mixed economy. It provides freedom of enterprise ownership and profit earning as well as social welfare and political freedom. And all the national recourses are utilized under mixed economy.
DISADVANTAGES
Mixed economy is half way house. It is not helpful in achieving optimal use of national resources. The mixed economy suffers from the drawbacks of both the capitalism and the socialism. Mixed economy seldom achieved progress. It suffers from continues back wardness. Under mixed economy wastage of different types occurs in the economy.
The mixed economy is helpful in increasing national production in the country. Both public and private sectors work hard to bring about more production. The problems created by free enterprise and too much public control are solved through mixed economy. It provides freedom of enterprise ownership and profit earning as well as social welfare and political freedom. And all the national recourses are utilized under mixed economy.
DISADVANTAGES
Mixed economy is half way house. It is not helpful in achieving optimal use of national resources. The mixed economy suffers from the drawbacks of both the capitalism and the socialism. Mixed economy seldom achieved progress. It suffers from continues back wardness. Under mixed economy wastage of different types occurs in the economy.
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The world is dividing into two extreme economics systems capitalism and socialism. In capitalism which also called market economy. In such system there is total private ownership, which means that private people and business own by the land and property. The government play a very small role in business while the owner have complete control of their own affairs and make all their own decisions regarding what to produce, how to produce. In market economy there is great competition in between producer and shopkeepers. As a result of this competition there is a great verity of goods in the shops. America and Philippines are the nearest examples of the market economy which exist in modern world.
While on the other hand socialism which is also called planned or command economy. This type of economic system is opposite to the market economic system. This type of economic system was operated in all country of which were under a communist regime, however it is now very rare. In some cases the government play a very dominant role about plan how much will be produce and how much resources will be used. In other cases the government play less prominent role, leaving business decision to the business people. Because of the problems inherited in both economic system, like miss-allocation of resources ,market imperfection, exploitation of the consumer, due to said problems the happy marriage was arranged in between capitalism and socialism economist thinking n the from of mixed economy.
This is the most popular type of economic system. This economics system permits free enterprise, but at the same time ensures that the basic needs of all citizens are met. Advantages of mixed economy in that, a verity of goods are available. We can find the role of co-operatives in the field of cultivation diary, poultry. The use of intoxicants and drugs is prohibited and the government never allows black marketing. Income disparities can be checked. The basic rational behind under mixed economy is to raise social welfare of the masses removing the pitfalls attached with the free enterprise. Public services are provided for every one. Disadvantages of mixed economy is that many people still pay for their treatment while others can not afford to do so. There lack of co-operative in between private sector and public sector. in Mixed economy the public sector expend rapidly, as a result the government expenditure increases many time ,on the other hand government revenue always short for it. As in mixed economy the public sector is powerful as a result bureaucrat can constitute its own policy.
While on the other hand socialism which is also called planned or command economy. This type of economic system is opposite to the market economic system. This type of economic system was operated in all country of which were under a communist regime, however it is now very rare. In some cases the government play a very dominant role about plan how much will be produce and how much resources will be used. In other cases the government play less prominent role, leaving business decision to the business people. Because of the problems inherited in both economic system, like miss-allocation of resources ,market imperfection, exploitation of the consumer, due to said problems the happy marriage was arranged in between capitalism and socialism economist thinking n the from of mixed economy.
This is the most popular type of economic system. This economics system permits free enterprise, but at the same time ensures that the basic needs of all citizens are met. Advantages of mixed economy in that, a verity of goods are available. We can find the role of co-operatives in the field of cultivation diary, poultry. The use of intoxicants and drugs is prohibited and the government never allows black marketing. Income disparities can be checked. The basic rational behind under mixed economy is to raise social welfare of the masses removing the pitfalls attached with the free enterprise. Public services are provided for every one. Disadvantages of mixed economy is that many people still pay for their treatment while others can not afford to do so. There lack of co-operative in between private sector and public sector. in Mixed economy the public sector expend rapidly, as a result the government expenditure increases many time ,on the other hand government revenue always short for it. As in mixed economy the public sector is powerful as a result bureaucrat can constitute its own policy.
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In Ghana we have 60% in the free Market and 40% of Command Economy.
Try this link it answered all my questions maby it will answer your too try it wont hurt!!@@
http://www.socyberty.com/Economics/The-Advantages-and-Disadvantages-of
-Traditional-Command-and-Market-Economies.47262
http://www.socyberty.com/Economics/The-Advantages-and-Disadvantages-of
-Traditional-Command-and-Market-Economies.47262
What are the advantages of a mixed economy? Hmm let me see......
1. Advantage: More freedom because the government doesn't control as much as in communism
2. Advantage: A mixed economy incorporates both socialism and capitalism, the best of both
1. Advantage: More freedom because the government doesn't control as much as in communism
2. Advantage: A mixed economy incorporates both socialism and capitalism, the best of both
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Hi. Im Mr Like :) if you dont already know (which you should) I like to say like very much. I have a great liking for like. Like is a bombastic word.
Thank you for your encouragement. I hope to soon be world wide in the cinemas with my new movie, 'Liking Mr Like'. I hope that it will lead to many great discoveries in the world today.
Once again, Thank YOU!
Please book your tickets as soon as we are advertised...
Sincerely
Mr Like
Thank you for your encouragement. I hope to soon be world wide in the cinemas with my new movie, 'Liking Mr Like'. I hope that it will lead to many great discoveries in the world today.
Once again, Thank YOU!
Please book your tickets as soon as we are advertised...
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