ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Mixed economic systems are not laissez-faire systems, because the government is involved in planning the use of some resources and can exert control over businesses in the private sector. Governments may seek to redistribute wealth by taxing the private sector and by using funds from taxes to promote social objectives.

Detailed explanation-2: -There is limited government regulation in a mixed economy, while there is heavy government regulation and control in a command economy. In the mixed economy, governments allow corporations to profit, but levels of profit might be limited by taxation or by imposing tariffs.

Detailed explanation-3: -Capitalism is the most prominent in our current global economic system. Its main characteristic is that it most means of production and property are privately owned by individuals and companies. The government has a limited role in such an economy limited to management and control measures.

Detailed explanation-4: -Four Main Functions of Government in a Market Economy: However, according to Samuelson and other modern economists, governments have four main functions in a market economy-to increase efficiency, to provide infrastructure, to promote equity, and to foster macroeconomic stability and growth.