Features of mixed economy
(i) Co-existence of private and public sector: The first important feature of a mixed economy is the co-existence of both private and public enterprise.
In fact, in a mixed economy, there are three sectors of industries:
(a) Private sector: Production and distribution in this sector are managed and controlled by private individuals and groups. Industries in this sector are based on self-interest and profit motive. The system of private property exists and personal initiative is given full scope. However, private enterprise may be regulated by the government directly and/or indirectly by a number of policy instruments.
(b) Public sector: Industries in this sector are not primarily profit-oriented, but are set up by the State for the welfare of the community.
(c) Combined sector: A sector in which both the government and the private enterprises have equal access, and join hands to produce commodities and services, leading to the establishment of joint sectors.
(i) Co-existence of private and public sector: The first important feature of a mixed economy is the co-existence of both private and public enterprise.
In fact, in a mixed economy, there are three sectors of industries:
(a) Private sector: Production and distribution in this sector are managed and controlled by private individuals and groups. Industries in this sector are based on self-interest and profit motive. The system of private property exists and personal initiative is given full scope. However, private enterprise may be regulated by the government directly and/or indirectly by a number of policy instruments.
(b) Public sector: Industries in this sector are not primarily profit-oriented, but are set up by the State for the welfare of the community.
(c) Combined sector: A sector in which both the government and the private enterprises have equal access, and join hands to produce commodities and services, leading to the establishment of joint sectors.
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