1. Mixed Economy
By Ashish Tyagi 24

2. Mixed Economy
• Mixed economy is an economic system in
which both the state and private
sector direct the economy, reflecting
characteristics of both market
economies and planned economies. Most
mixed economies can be described as market
economies with strong regulatory oversight.

3. • The basic plan of the mixed economy is that the means of production
are mainly under private ownership; that markets remain the dominant
form of economic coordination; and that profit-seeking enterprises and
the accumulation of capital would remain the fundamental driving force
behind economic activity.
• Additionally, the government would wield considerable influence over
the economy through fiscal and monetary policies designed to
counteract economic downturns and capitalism's tendency toward
financial crises and unemployment , along with playing a role in social
welfare interventions.

4. Features Of Mixed Economy
• Private and public sector exist side by side. Thus, economic activities
are carried out by individuals as well as the government.
• Private and public sectors are required to function in a properly
coordinated manner.
• A part from national security, government engages itself in those
activities that the private enterprises consider as unprofitable or
beyond this reach.
• All basic and heavy industries and other strategic sector of an
economy e.g., banking, transport, energy etc. are controlled by the
government. Agriculture, consumer goods and other industries trade
are left for the private sector.

5. Advantages
• Since mixed economy involves both government
and private enterprises it has the advantage of
taking the benefits of capitalist nature of private
companies and socialist nature of government.
• There is less inequality of income because intent of
government is to have a balanced economic growth
of an economy.
• Mixed economy allows individuals to run their
business and make profits but at the same time it
places some responsibility on these companies by
inducing them to contribute towards the welfare of
society.

6. Disadvantages
• Since welfare of society is important in a mixed economy it leads to
lower than optimum use of the resources because government mobilize
the resources towards the production of those goods and services
which are beneficial for the society as a whole rather than producing
those goods and services which in economic terms are more beneficial
for an economy.
• Under mixed economy private enterprises have to face lot of difficulty
because of various government loopholes like favoritism and
bureaucratic nature which is prevalent in mixed economy.

8. The End
Thank You
Done by ----------
Tyagi Ashish