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

Economics, Tc and TVC curves have an inverted s-shape

Tc and TVC curves have an inverted s-shape

What are the three basic economic questions, What are the "three basic econ...

What are the "three basic economic questions" that economists often address when examining how much economic output is formed? The three basic questions are: a) what is prod

Silicon properties, What are the chemical properties of silicon?

What are the chemical properties of silicon?

Theory of perfect competition, Perfect competition has the following charac...

Perfect competition has the following characteristics: 1. Large number of firms - There are a large number of firms in the market. Due to this each firm produces a very small fr

What do you meant by enclosures, Q. What do you meant by Enclosures? En...

Q. What do you meant by Enclosures? Enclosures: A historic process in Britain and other European countries, in very early years of capitalism, in that lands formerly held and u

Satisfy the linear relationship, Let {(y i * ; x i ); 1 ≤ i ≤ n} be an i.i....

Let {(y i * ; x i ); 1 ≤ i ≤ n} be an i.i.d sequence of random variables where y i * and x i satisfy the linear relationship y i * = β 0 + β 1 x i + ∈ i with Cov(x i ; ∈

PRODUCTION FUNCTION, discuss the problems of measuring productivity in actu...

discuss the problems of measuring productivity in actual work situations. how might productivity be measured for each of the following industries: education, government and manufac

Demand and supply, Define the term “cross elasticity of demand” (2 marks) P...

Define the term “cross elasticity of demand” (2 marks) Price of commodity X (SH) Demand for commodity X (Units) 12 80 16 100 20 120 24 140 28 160 d) The following data relate to a

Theory of consumer surplus, THEORY OF CONSUMER SURPLUS: We discuss the...

THEORY OF CONSUMER SURPLUS: We discuss the basic concept of consumer surplus and its derivation. A consumer normally pays less for a commodity than the maximum amount that she

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