ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The U.S. has a mixed economy, exhibiting characteristics of both capitalism and socialism. Such a mixed economy embraces the free market when it comes to capital use, but it also allows for government intervention for the public good.

Detailed explanation-2: -Types of Mixed Economies #1 – Partial State Control – The ownership of factors of production. read more like a factory, machinery, the plant is owned by the private entities, and the government plays a regulatory role. #2 – Total Government Control – The state directly influences the functioning of the entities.

Detailed explanation-3: -In a capitalistic society, individuals and businesses aim to earn a profit with the production of their investment and labor in a free market operating largely by supply and demand. Socialism is when the government owns and/or controls productive enterprises. A mixed economy is aspects of both.

Detailed explanation-4: -The economy is controlled by individual people, not by the government. The United States is a capitalist, market economy.

Detailed explanation-5: -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.