Write a short note on Mixed Economy?

Answer 1

Mix way economy is also known as mid way economy. Mix economy/ mid way, economy is one where resources are owned by the government and by the private sector. The basic question of

· What to produce

· How to produce &

· For whom to produce

Will be answered by the government and the private sector. The resource allocation will be made by both the sector. There will be government planning and private sector will take decision based on customer preference.

The vast majority of countries around the world have some form of mixed economy where some resources are allocated through the price or market mechanism and other are allocated by the state. In theory, such a system is able to combine the best element of both a planned economy and a market economy. In reality the proportion of planned and market varies, with some countries placing more emphasis on market solution to resources allocations another favoring a greater role for estate for planning.

One example of mix economy /mid way economy is:

MAURITIUS