ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -What is a Mixed Economic System? The mixed economic system is defined as an economic system that combines the elements of a market economy and the elements of a planned economy. It is a synthesis of socialism and capitalism, which contains both private enterprises and public enterprises.

Detailed explanation-3: -This type of mixed economy specifically refers to a mixture of private and public ownership of industry and the means of production. As such, it is sometimes described as a “middle path” or transitional state between capitalism and socialism but can also refer to a mixture of state capitalism with private capitalism.

Detailed explanation-4: -In practice, however, communism is the name often given to a revolutionary form of socialism, also known as Marxism-Leninism, which took root in the Soviet Union and China during the 20th Century.

Detailed explanation-5: -India has a mixed economy; therefore, public, as well as private entities, co-exist. This is as a result of adapting the industrial policies in 1948 and later in 1956. However, they do not operate freely; instead, they are controlled by different mechanisms, i.e. policies implemented by Governments.