Mixed Economy

By Ashish Tyagi 24
Mixed Economy
Mixed economyis
aneconomic systemin
which both
thestateandprivate
sectordirect the economy,
reflecting characteristics of
bothmarket
economiesandplanned
economies. Most mixed
economies can be described
asmarket economieswith
 The basic plan of the mixed economy is that
the means of production are mainly
underprivate ownership; that markets
remain the dominant form of economic
coordination; and that profit-seeking
enterprises and theaccumulation of
capitalwould remain the fundamental
driving force behind economic activity.
Additionally, the government would wield
considerable influence over the economy
 Features Of Mixed Economy
Private and public sector exist side by side.
Thus, economic activities are carried out by
individuals as well as the government.
Private and public sectors are required to
function in a properly coordinated manner.
A part from national security, government
engages itself in those activities that the
private enterprises consider as unprofitable
or beyond this reach.
All basic and heavy industries and other
strategic sector of an economy e.g.,
 Advantages
Since mixed economy involves
both government and private
enterprises it has the
advantage of takingthe
benefitsof capitalist nature of
private companies and socialist
nature of government.
There is less inequality of
income because intent of
government is to have a
balanced economic growth of
an economy.
 Disadvantages
Since welfare of society is important in a
mixed economy it leads to lower than
optimum use of the resources because
government mobilize the resources towards
the production of those goods and services
which are beneficial for the society as a
whole rather than producing those goods
and services which in economic terms are
more beneficial for an economy.
Under mixed economy private enterprises
have to face lot of difficulty because of
The End

Thank You

Done by
----------Tya
gi Ashish