Mixed Economic System

has both government and privately owned businesses

Why is it better?


  • Mixed economies allow many more freedoms than command economies, such as freedom to posses the means of production
  • Mixed economies have a high level of state participation and spending
  • Various restrictions on business are made for the greater good, for example, environmental regulation, labor regulations, antitrust and intellectual property laws.

Think About It

Characteristics

Characteristics for Mixed Economy

One main characteristic of a mixed economy is the ownership of goods by both private and government/state-owned entities. Monopolies have the potential to occur in this type of economy, but the government closely monitors this. For the economy to be mixed, the government can control some parts but not all. For example, the government may control health care and/or welfare in some mixed economy countries.'