A mixed economic system solves basic economic problems, Microeconomics

Why do some people believe that a mixed economic system solves basic economic problems? 

Ans) It is due to  the private sector and public sector both have a say in answering the basic economic questions, therefore, there will be a degree of high efficiency (because of the private sector involvement) and social welfare too (because of the public sector involvement).

It permits the Government to intervene when the economy faces market failure. The mixed economic system permits markets to operate freely until it fails to assign resources efficiently, after this, the government agencies, such as the EU Competition Commission, are able to correct for these failures. If this had been a totally free economic system, Government agencies would not have the means of power to be able to intervene.

 

Posted Date: 4/1/2013 3:00:43 AM | Location : United States







Related Discussions:- A mixed economic system solves basic economic problems, Assignment Help, Ask Question on A mixed economic system solves basic economic problems, Get Answer, Expert's Help, A mixed economic system solves basic economic problems Discussions

Write discussion on A mixed economic system solves basic economic problems
Your posts are moderated
Related Questions
what is market economy and how it solve the central problem


Output 0 Fixed cost $100 Varaible Cost 40 what is the Total cost and Total revenue also the Profit/Loss

FIXED EXCHANGE RATE SYSTEM: National currencies are generally acceptable within the geographical boundaries of a country. As such, trade between countries typically involves

What are the economic implications of income inequality? How can economic theory be helpful to analyze the causes and impact of income inequality? What are the concerns and how can

Economic Cycle The economic cycle is the long-standing sample of alternating times of economic growth (expansion) and decline (recession), followed by changing economic indica

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4