Mixed Economy
Mixed Economy A mixed economy refers to the economic system where the economic activities are directed by both private individuals and the government. It reflects the characteristics of both market and planned economy. According to Professor Samuelson, “Mixed economy is that economy in which both public and private sectors cooperate.” How does the mixed economic system work: A mixed economic system carries the characteristics of both the planned and market economies. In planned economies, the government regulates the market and controls the strategic industries. Examples of countries with planned economies are Cuba, North Korea, and the Former Soviet Union. In the market economy, prices and supply-demand of goods are controlled by private individuals with key industries owned by private enterprises. E...