ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In a mixed economy, both public and private sectors own and produce goods and services. While private players participate in the production of goods and services, the government makes major decisions for the economy keeping social welfare in mind.

Detailed explanation-2: -Mixed economies typically maintain private ownership of most of the means of production, with the government intervening through regulations. Mixed economies socialize select industries that are deemed essential or that produce public goods.

Detailed explanation-3: -In a mixed economic system, the private sector and public sector co-exist. There is a certain level of economic freedom so that the private sector can decide the use of capital and seek profits. It simultaneously allows the government to intervene in some economic activities and industries.

Detailed explanation-4: -Types of Mixed Economies #1 – Partial State Control – The ownership of factors of production. read more like a factory, machinery, the plant is owned by the private entities, and the government plays a regulatory role. #2 – Total Government Control – The state directly influences the functioning of the entities.

Detailed explanation-5: -Alternatively, a mixed economy can refer to a reformist transitionary phase to a socialist economy that allows a substantial role for private enterprise and contracting within a dominant economic framework of public ownership.