ECON PRESENTATION

Mixed Economies

Group 3

What is an economy?

According to Edward Bahaw BSc an economist and author, an economy refers to a distinct region where economic activity takes place.

Are there different types of economy?

Yes, and they are:

1. Planned Economy 2. Free Market 3. Mixed Economy

Mixed Economy

A Mixed Economy according to investopedia.com is a system that combines aspects of both capitalism and socialism. In a mixed economy, both private individuals and the government allocate resources. There is both a private sector and a public sector.

Characteristics of a Mixed Economy

Private Sector business activities encouraged

State controls resources in supply of certain goods and services

Taxes are collected as revenue to pay for state goods and services.

Are there advantages of the Mixed Economy System

5. Consumer choice exists and works incentives too

1. The State provides essential services for all in society- whether rich or poor.

6. Inefficient business behavior is controlled or outlawed, for example dangerous products or polluting factories

2. Private sectors are still encouraged to be successful and allowed to earn profits from enterprises.

3. Competition allows the advantages seen in a free market economy

7. Both private individuals and government allocates resources.

4. Economic imbalance is reduces

Taxes maybe heavy to pay for state goods and services- this could reduce incentives to work hard or make profit

Disadvantages of a Mixed Economy

State organizations can be less efficient than private sector alternative

Excessive controls over business activity can add to costs and discourage enterprise

Reduced competition

Countries that utilizes a Mixed Economy

Jamaica United Kingdom Australia France Germany Sweeden Norway Greece