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: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.

Detailed explanation-3: -A mixed economy combines market and command economy elements, with both private and government ownership of resources and businesses and a mix of free markets and government intervention in economic decision-making.

Detailed explanation-4: -While a mixed economy combines free market with central government planning and intervention, a market economy relies purely on the free market (and the rules of supply and demand) to regulate the economy. For this reason, profit motives, incentives, and capitalism are the driving factors of the economy.

Detailed explanation-5: -A capitalist economy is characterized by private ownership of factors of production, while a socialist economy is characterized by state ownership of factors of production. A mixed economy, on the other hand, is characterized by private and state ownership of factors of production.