A mixed economic system solves basic economic problems, Microeconomics

Assignment Help:

Why do some people believe that a mixed economic system solves basic economic problems? 

Ans) It is due to  the private sector and public sector both have a say in answering the basic economic questions, therefore, there will be a degree of high efficiency (because of the private sector involvement) and social welfare too (because of the public sector involvement).

It permits the Government to intervene when the economy faces market failure. The mixed economic system permits markets to operate freely until it fails to assign resources efficiently, after this, the government agencies, such as the EU Competition Commission, are able to correct for these failures. If this had been a totally free economic system, Government agencies would not have the means of power to be able to intervene.

 


Related Discussions:- A mixed economic system solves basic economic problems

?market demand curves, Market Demand Market Demand Curves - A curve ...

Market Demand Market Demand Curves - A curve which relates the quantity of a good that all the consumers in a market buy to price of that good. Determining Market Demand

International economics, how has the haberlers theory of opportunity cost ...

how has the haberlers theory of opportunity cost an improvement over the classical theory of trade

Nature, explain nature of microeconomic

explain nature of microeconomic

What is the policy of the east asian miracle, The East Asian Miracle Ho...

The East Asian Miracle However the set of extraordinarily successful economies isn't limited to the set of original OECD economies. Economies of the East Asian miracle have ove

What is Isomers and Types of Isomers, Isomers are two or more forms of comp...

Isomers are two or more forms of compounds which having the same compositions. Types of isomers (a) Stereo isomers (b) Structural isomers

Explain the concept of opportunity cost, The concept of opportunity cost oc...

The concept of opportunity cost occupies a very important place in modern economic analysis. The opportunity cost of any good is the next best alternative goods that are sacrificed

Narrowness of definition of the commodity, Question : (a) Explain why...

Question : (a) Explain why each of the following factors may influence the own price elasticity of demand for a commodity. (i) Consumer preferences, that is, whether c

Perfect competition, At a market price of $21 a toy, what quantity does the...

At a market price of $21 a toy, what quantity does the firm produce in the short run and does the firm make a positive economic profit, a zero economic profit, or an economic loss?

#syndicated oligopoly, Could I have examples of syndicated and organized ol...

Could I have examples of syndicated and organized oligopolies with companies as examples

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd