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

Principles of microeconomics, can you help me figure out how to create a gr...

can you help me figure out how to create a graph with little or no information

Economic acivity, The prevention of major swings in economic activity can b...

The prevention of major swings in economic activity can be handled most easily by the

Equilibrium, short run equilibrium of the industry

short run equilibrium of the industry

Nature and types of resource, Normal 0 false false false ...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Cardinal utility, what is cardinal utility. Please give an example

what is cardinal utility. Please give an example

Explain supply vs. quantity supplied, Define and explain the following econ...

Define and explain the following economic terms: Economics, Microeconomics & Macroeconomics Positive vs.  Normative Economics Law of Diminishing Marginal Utility Opport

Miss, explain how scarcity impacts choice 2.expain the three steps process ...

explain how scarcity impacts choice 2.expain the three steps process in economic analysis

Comparison with our targets - structure of national income, Comparison wit...

Comparison with Our Targets : A proper objective assessment of our performance can be carried out only when we juxtapose our current achievements with: (i) planned or targeted

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