Question

Enumerate the features of a mixed economy.

Answer 1

Features of Mixed Economy:

1. Ownership of Property and Means of Production: The means of production and properties are owned by both private and public. Public and Private have the right to purchase, use or transfer their resources.
2. Coexistence of Public and Private Sectors:
   In mixed economies, both private and public sectors coexist. Private industries undertake activities primarily for profit. Public sector firms are owned by the government with a view to maximizing social welfare.
3. Economic Planning:
   The central planning authority prepares the economic plans. National plans are drawn up by the Government and both private and public sectors abide. In general, all sectors of the economy function according to the objectives, priorities, and targets laid down in the plan.
4. The solution to Economic Problems:
   The basic problems of what to produce, how to produce, for whom to produce, and how to distribute are solved through the price mechanism as well as state intervention.