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: -In a mixed system, private individuals are allowed to own and control some (if not most) of the factors of production. Free market economies allow private individuals to own and trade, voluntarily, all economic resources.

Detailed explanation-3: -In a capitalist economy, the government acts as a regulatory and complementary body. On the other hand, in a socialist economy, the government plays a comprehensive role in almost all economic activities, such as production, distribution, and consumption, of a nation.

Detailed explanation-4: -The government’s role in a mixed economy is that it is the: Regulator charged with preserving competition. Economic goals are important because they: Help people determine if an economic system meets their needs.