Advantages:

i. Best allocation of resources. A mixed economy combines the good features of both capitalism and soclialism. Therefore, the resources of the economic are utilized in a way that ensures the adequacy of all types of goods and services and production efficiency increases,


ii. General Balance. The competition and cooperation between the public sector and the private sector favours the realization of a high rate of capital accumulation and economic growth.


iii. Welfare State. In a mixed economy, there is no exploitation either by the capitalists or by the state. Government agencies are established to protect consumers’ interest, while legislative measures are adopted to reduce proverty and inequalities of income and wealth.