Mixed Economy Mixed economy refers to the economic

Mixed Economy Mixed economy refers to the economic system where the economic activities are directed by both private and the government. Main Features Of Mixed Economy: 1) Co-existence of the public and private sectors 2) Role of price system and government directives 3) Government Regulation and control of private sector 4) Consumer sovereignty protected 5) Government protection of labour 6) Reduction of economic inequalities 7) Control of monopoly 8) Economic planning

1. Co-existence Of The Public And Private Sectors and private sectors. In public sector, industries like defense, power, energy, basic industries etc. , are set up. On the other hand, in private sector all the consumer goods industries, agriculture, smallscale industries are developed. The government encourages both the sectors to develop simultaneously.

2. Role Of Price System And Directives Government Public sector is concerned economic decision related to production, prices and investment are made by government. Ø But private sector is operated by price – mechanism. Ø Private sector is concerned economic decision related to production, prices and investment are made by private entrepreneur –capitalist and industrialist with the object of making maximum profits on the basis of price system. Ø

3. Government Regulation and private sector �Government control of adopt necessary measures to regulate and control private sector. 1. Through licensing system. 2. Through appropriate monetary and fiscal policy.

4. �Under Consumer sovereignty protected mixed economy, there is full freedom of choice of occupation, although consumer does not get complete liberty but at the same time government can regulate prices in public interest through public distribution system

5. Government protection of labour �Government save labour from exploitation by the capitalists. �Minimum wages and working hours have been fixed. �Restriction have been imposed on the employment of small children in factories. �Labour is paid compensation for accidents while at work. �Government also takes necessary steps to prevent industrial disputes.

6. � In Reduction of economic inequalities this system, government takes several measures to reduce the gap between rich and poor through progressive taxation on income and wealth. � The subsidies are given to the poor people and also job opportunities are provided to them. � Other steps like concessions, old age pension, free medical facilities and free education are also taken to improve the standard of poor people. � Hence, all these help to reduce economic inequalities.

7. Control of monopoly �Under this system, government takes huge initiatives to control monopoly practices among the private entrepreneurs through effective legislative measures. �Besides, government can also take over these services in the public interest.

8. �In Economic planning a mixed economy, government always tries to promote economic development of the country. �For this purpose, economic planning is adopted. Thus, economic planning is very essential under this system.