ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a mixed economy both market forces and government decisions determine which goods and services are produced and how they are distributed.

Detailed explanation-2: -In a market economy, the producer gets to decide what to produce, how much to produce, what to charge customers for those goods, and what to pay employees. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand.

Detailed explanation-3: -Governments may seek to redistribute wealth by taxing the private sector and by using funds from taxes to promote social objectives. Trade protection, subsidies, targeted tax credits, fiscal stimulus, and public-private partnerships are common examples of government intervention in mixed economies.

Detailed explanation-4: -In a mixed market economy, the laws are set up by the government to regulate the market and achieve social objectives. It has advantages for the producers as the public and private enterprises both exist in the market, and some level of competition among firms leads to profits.