What are the features of the mixed economy?
Mixed economy is an economy that has some parts of capitalist and socialist economies. Mixed economy features include the public sector, private sector and economic planning. The purpose is to provide consumers with an open market and the government's ability to engage in regulation and social engineering. Many countries use mixed economies to different levels of success.
The public sector of the economy includes all government bodies and agencies. This includes national, regional or state and local government bodies and agencies and agencies that are able to hand over taxes and provoke the private sector regulations. In other words, the public sector has some control of the private sector. Although most mixed economies have certain rules on private property protection, individuals and businesses may not be able to maintain as much as in market economies. Public officials in this sector may be elected to the office or appointed by other individuals already in Office.
Private mixed economy sectors include both individuals and businesses that try to earn profits from the sale of goods and services. Here, the distribution of economic resources often occurs among all parties in the private sector. Those who decide to operate in the private sector must listen and function within the mixed economy as created by the public sector. In some cases, the private sector companies can cooperate together with the public sector. This occurs when the company concludes a contract for goods or services needed only by the agency or offices of the public sector.
Economic planning is often one of the most important features of mixed economy. The public sector can set up agencies and offices set by specific goals or plans for the economy. For example, the central bank can set interest rates and money supply for the entire economy. The resulting changes can either expand the economy oro Send it to the period of contraction. Taxes allow the government to engage in wealth transfers, take money from successful individuals or companies, and give other parties.
The amount of freedom and control often changes in a mixed economy. The main features of mixed economies can leave some freedom with individuals and businesses to function in their own interests while placed control in the hands of the government. This is perhaps the biggest difference between the market and the mixed economy.