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You can download the paper by clicking the button above. Enter the email address you signed up with and we’ll email you a reset link. Mixed economy is that economy in which both government and private individuals exercise economic control. Meaning: It is a golden mixture of capitalism and socialism. Under this system there is freedom of economic activities and government interferences for the social welfare. Hence it is a blend of both the economies.
It is a golden mixture of capitalism and socialism. The concept of mixed economy is of recent origin. The developing countries like India have adopted mixed economy to accelerate the pace of economic development. Even the developed countries like UK, USA, etc. Mixed economy is that economy in which both public and private sectors cooperate. Under this system there is co-existence of public and private sectors.
In public sector, industries like defence, power, energy, basic industries etc. On the other hand, in private sector all the consumer goods industries, agriculture, small-scale industries are developed. The government encourages both the sectors to develop simultaneously. Under mixed economy, there is full freedom of choice of occupation, although consumer does not get complete liberty but at the same time government can regulate prices in public interest through public distribution system. In mixed economy, private property is allowed. However, here it must be remembered that there must be equal distribution of wealth and income.
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