Disadvantages of mixed economy system, Microeconomics

The drawbacks of a mixed economy actually depend on how "mixed" it is. For instance, if it is mixed more towards a free-market, there is little regulation (some may see this as a good, though), but if it is mixed more towards a command economy, the control may stifle growth.


Mixed economies can also have dissimilar characteristics. Every of these will share a dissimilar set of drawbacks. A will stifle incomes due to its high tax structure, but will encourage new ideas because of its low regulation (this could result in many weird effects such as an economy comprised almost solely of small, well-niche businesses). B will encourage income, but because of its regulation, some new ideas (and some growth) will be stifled. For instance, if environmental regulations are strict, the building of new plants or refineries may be lowered.

 

Posted Date: 4/1/2013 1:43:40 AM | Location : United States







Related Discussions:- Disadvantages of mixed economy system, Assignment Help, Ask Question on Disadvantages of mixed economy system, Get Answer, Expert's Help, Disadvantages of mixed economy system Discussions

Write discussion on Disadvantages of mixed economy system
Your posts are moderated
Related Questions
Functions and Resources of the Bank  The main functions of the Bank are as follows: •  to assist in reconstruction and development of the territories of it member-governmen

Problems relating to national income estimation: Changing prices of goods and services . Prices of goods and services do change from one period to another. This makes compari


Explain how unemployment could be voluntary or involuntary . Start off with a definition of the labour force and then outline the proportion of the labour force which would be

Demand for Risky Assets *  Assets - Something which provides a flow of money or services to its owner. -  The flow of money or services can be explicit or implicit . *

THEORY OF INTER-TEMPORAL CONSUMPTION: In the previous two units, we have been concerned with choices among contemporaneous commodities. An important class of choices made by c

net preparation ranjna baghel

Where minimum efficient scale is very huge for capital intensive operations, it may be more cost effective to allow one company to spread its fixed costs over a very huge number of


determinate equilibrium price and quantity. if Qd=7-1/2p AND Qs=1/4P-1/2