ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The transition to a market economy would require state intervention alongside market liberalization, privatization and deregulation. Rationing of essential consumer goods, trade quotas and tariffs and an active monetary policy to ensure that there was sufficient liquidity to maintain commerce might be needed.

Detailed explanation-2: -The transition to a market economy involves a shift from planned economy. Under the market principles, the market functions as an important mechanism in adjusting production and consumption, or supply and demand in the economy.

Detailed explanation-3: -A mixed economy may emerge when a government intervenes to disrupt free markets by introducing state-owned enterprises (such as public health or education systems), regulations, subsidies, tariffs, and tax policies.

Detailed explanation-4: -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.