3. “Mixed economy is that economy in which both
government and private individuals exercise economic
control.”
~Murad
4. “Mixed economy is that economy in which both
public and private sectors cooperate.”
~Prof. Samuelson
5. MIXED
ECONOMY a system that combines
characteristics of market,
command and traditional
economies.
6. Mixed
Economy
Market
Economy
Protects private property
Allows the free market and laws of supply and
demand to determine prices
Driven by motivation of self-interest of individuals
Command
Economy
allows the government to safeguard its people and
its market
large role in the military, international trade and
national transportation.
government’s role in other areas depends upon the
priorities of the citizens
Traditional
Economy
23. • ownership of various factors of production remains under
private control.
• main responsibility of the government in this system is to
ensure rapid economic growth without allowing
concentration of economic power in the few hands.
Capitalistic
Mixed
• means of production are in the hands of state.
• whenever and wherever demand is necessary,
government takes actions so that basic idea of economic
growth is not hampered
Socialistic
Mixed
Economy
24. Socialistic Mixed Economy
• the government interferes to bring about timely
changes in market forces so that the pace of
rapid economic growth remains uninterrupted
Liberal
Socialistic
Mixed Economy
• major decisions are taken by central agency
according to the needs of the economy.
Centralised
Socialistic
Mixed Economy
38. • it can distribute goods and services to where
they are most needed.
• It allows prices to measure supply and demand.
• It rewards the most efficient producers with
the highest profit
• It automatically allocates capital to the most
innovative and efficient producers.
• A mixed economy also minimizes the
disadvantages of a market economy.
• The expanded governmental role makes sure
less competitive members receive care.
In
encouraging
innovation:
40. • it can leave the less competitive members of society
without any government support.
If the country
has too much
freedom:
• The defense industry could become a
government-subsidized monopoly or oligarchy
system.
• . Successful businesses can lobby the
government for more subsidies and tax breaks.
• The government could protect the free market
so much that it doesn’t regulate enough.
If there is
central
planning:
42. United States of America
US Constitution protects ownership of private property and
limits government interference in business operations.
Constitution also protects the rights
of groups to practice their
customary beliefs.
The Constitution encourages the
government to promote general
welfare.
43. MIXED
ECONOMY
AND
GLOBALIZATION
❶ When a country encourages
its businesses to export, it
gives up some control.
❷ The free market is the basis
for the global economy.