There is another type of economies besides market economy and command economy. This one is called mixed economy. The mechanism of mixed economy is that some of the tasks are given to private sector while some are left with the government itself. Both are carried parallel with each other. So this give the economy great boost every body is doing its best the government is playing its role and the private sector is contribution its share to the economy. Many of the countries are experiencing the mixed economy because it gives the better economic results. The government is earlier introduced this concept to enhance the economic activities of their countries.
Government in the mixed economy plays an important role not only it provides infrastructure facilities to the country but also provide the job opportunity to the people of that country. Now many governments are realizing the importance of free economy where major stress is on the privatized economy and government does not interfere themselves. There is constant trend in experiments of free economy and in many countries it enhance the business productivity and also the economic activity in the country. People then less rely on governments and they took initiative to make money themselves or they find the ways of self employed.
One of the major features of a mixed economy is that it has merits of both the systems i.e. Socialism and Capitalism, and does not adopt the demerits of both the systems. The rest of the characteristics of mixed economy are as follows; 1)THREE SECTORS OF ECONOMY: These are explained in detail below; a)Public Sector: It is run and owned by the state on the pattern of planned economies e.g Railway system, College Education, Defence, Govt. Universities, Police, in short all Govt. Departments, also secretariats, etc. B)Private Sector: It is run and owned privately on the pattern of Capitalism. In a mixed economy both systems/sectors are parallel functioning. C)Semi Govt. Or antonymous body Corporation: This is a mixture of Private as well as Govt. Systems/sectors such as OGDAN, Utility store corporation, there are also semi Govt. Universities and colleges such as in Pakistan International Islamic University, Islamabad Model College for Boys/Girls, etc. Mixed Economies considered to me an ideal system. It is operated in Germany, UK, France, Japan, Pakistan, India, Bangladesh, etc.
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 sector 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. Pakistan has also mixed economy, where government and public sector provide guidance to the private sector.
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.
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.
Talking about a mixed economy guarantees the co-existence of both public and private sectors. In communism, there is virtually no private sector while capitalism has an ingrained bias against public sector. In a mixed economy, public and private sectors are allow growing simultaneously and considered mutually supportive rather than antagonistic in character, both play significant role in their specific spheres.
Secondly, a mixed economy envisages a role both for price system or market mechanism and government directions or guidelines. Where price system falters and persuasion fails, government does not feel shy of direct intervention in order to impose its will and priorities on private sector.
Then, private sector, as corollary of the preceding feature is regulated and controlled by the state and its excessively optimistic or pessimistic postures are duly checked and moderated through direct and indirect fiscal and monetary measures.
Consumer's sovereignty, steam rolled in communism is largely protected in a mixed economy. Consumer priorities and preferences are duly reflected in production decision making in both public and private sectors.
Government enacts laws to end exploitation of labor ant to protect their rights. Government does not remain mere spectator while market mechanism plays havoc with their interests. In capitalism, economic inequalities are a normal features considered even desirable for stepping up saving and capital formation but in a mixed economy, conscious efforts are made to reduce these economic inequalities to avoid conflicts often threatening the disruption of an economy.
A mixed economy can be defined as economy that is govern by the goverment and the interplay beween demand and supply. It is a combination of social and capitalist economy.
Mixed economy is that where both public and private sectors play a important role. Success of country is not only base of free economy or planned economy but mixed economy is best economical system to face the economical challenges in the future.
Mixed Economy is an economy that is controlled by both the government and the free market.Also some of the resources and their uses are decided by the government and the others by the market. Furthermore in the mixed economy the good that is demanded the most will be sold but if that good is harmful in any way for example drugs the government can step in and tax the use of the good or ban it.So in a mixed economy the public and private sector work together to make decisions that result in economic growth.
A economy where most of sectors are kept open for private investment along with public investment as well.
A mixed economy has a combination of state owned and privately owned utilities and industries. Most countries in the world now have mixed economies. The tendency in modern times has been towards privatisation - getting away from the era of heavy state ownership in the middle and later 20th century - but in recent years some utilities have been seen as being better under state ownership. For example, the Uk rail network has been privatised since the 1990s, but the government has had to retake control of it to some extent.