ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a balance of needs & wants are met.
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citizens have to pay taxes.
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marketplace takes care of people’s wants.
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government takes care of people’s needs.
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Detailed explanation-1: -In a mixed economy, the size of government is much large than a market-based version. It has a greater emphasis on welfare spending and influencing the wider economy. So to pay for it, it requires quite high levels of taxation.
Detailed explanation-2: -However, there are some disadvantages to the mixed economy. One disadvantage is that the government cannot control the economy completely. Another disadvantage is that the government does not provide enough funding for social programs. In a mixed economy, the government has both public and private sectors.
Detailed explanation-3: -Disadvantages of Mixed Economy Problems of corruption, Kickbacks. read more, black market, nepotism are prevalent in a mixed economy. Excessive state control in a mixed economy hinders the growth of private sector industries.
Detailed explanation-4: -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-5: -The disadvantages of a market economy include monopolies, no government intervention, poor working conditions, and unemployment.