ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -mixed economy, in economics, a market system of resource allocation, commerce, and trade in which free markets coexist with government intervention.

Detailed explanation-2: -A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.

Detailed explanation-3: -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.

Detailed explanation-4: -Role of a government in a mixed economy The government sets up a judicial system, courts and police system for any injustices taking place in the market or any other sector. It is also the government’s job to allow limited resources to be utilized for productive uses.

Detailed explanation-5: -Let’s consider some examples of countries in which the government takes a leading role in the economy: Vietnam, Norway and Singapore: Vietnam is a mixed economy where the government maintains control over key industries such as energy and telecommunications, but also allows for private ownership and foreign investment.