64791556-Advantages-of-Mixed-Economy.doc - Advantages of...

This preview shows page 1 - 2 out of 3 pages.

Advantages of Mixed Economy1.Since mixed economy involves both government and private enterprises it has theadvantage of taking the benefits of capitalist nature of private companies andsocialist nature of government.2.There is less inequality of income because intent of government is to have abalanced economic growth of an economy.3.Mixed economy allows individuals to run their business and make profits but atthe same time it places some responsibility on these companies by inducing themto contribute towards the welfare of society.Disadvantages of Mixed Economy1.Since welfare of society is important in a mixed economy it leads to lower thanoptimum use of the resources because government mobilize the resources towardsthe production of those goods and services which are beneficial for the society asa whole rather than producing those goods and services which in economic termsare more beneficial for an economy.

Upload your study docs or become a

Course Hero member to access this document

Upload your study docs or become a

Course Hero member to access this document

End of preview. Want to read all 3 pages?

Upload your study docs or become a

Course Hero member to access this document

Term
Fall
Professor
N/A
Tags
Economics, Capitalism, Economic system, Planned economy

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture