ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -In practice most societies have economies that mix elements of both systems but that lean toward one end of the capitalism–socialism continuum. Social democracies combine elements of both capitalism and socialism. They have achieved high economic growth while maintaining political freedom and personal liberty.

Detailed explanation-2: -Democratic capitalism, also referred to as market democracy, is a political and economic system. It integrates resource allocation by marginal productivity (synonymous with free-market capitalism), with policies of resource allocation by social entitlement.

Detailed explanation-3: -While most modern forms of government are consistent with some form of mixed economy, the mixed economy is most commonly associated with social democratic parties or nations run by social democratic governments.

Detailed explanation-4: -In a mixed economy, the market is neither completely free nor fully controlled by the state. Countries like England, France, and India follow the mixed economic system where both, the state and private players, have control over the resources of distribution.

Detailed explanation-5: -Keynesian policies commonly supported by democratic socialists include significant economic regulation alongside a mixed economy, extensive social insurance schemes, generous public pension programs and a gradual expansion of public ownership over strategic industries.