ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Despite those philosophical and moral objections, almost all modern economic systems in the world today are mixed economies. While the globalization of the world economy limits government intervention in free trade, governments still retain mechanisms for social welfare exceptions to the free market rule.

Detailed explanation-2: -While most modern forms of government are consistent with some form of mixed economy, the mixed economy is most commonly associated with social democratic parties or nations run by social democratic governments.

Detailed explanation-3: -Democratic capitalism, also referred to as market democracy, is a political and economic system. It integrates resource allocation by marginal productivity (synonymous with free-market capitalism), with policies of resource allocation by social entitlement.

Detailed explanation-4: -The Bottom Line This type of economy allows the government to provide public goods and a basic safety net while enjoying the productivity of a market-based economy. In practice, most countries of the world are mixed economies, although some are more market-oriented and others are more state-led.

Detailed explanation-5: -A mixed economy is variously defined as an economic system blending elements of a market economy with elements of a planned economy, markets with state interventionism, or private enterprise with public enterprise. Common to all mixed economies is a combination of free-market principles and principles of socialism.