Microeconomics
•Download as PPTX, PDF•
0 likes•496 views
A mixed economy combines elements of capitalism and socialism. It allows for private ownership and enterprise alongside government regulation and ownership of key industries. In a mixed economy, both the private sector and public sector play roles, with private businesses operating alongside government provision of infrastructure and services, and some price controls over goods and services.
Microeconomics
- 3. ï‚ž An economic system that includes a mixture of capitalism and socialism. ï‚ž This system include a combination of private economic freedom and centralized economic planning and government regulation. ï‚ž Private sector and public are play a role in the mixed economy
- 4. Public and private ownership resources  Private enterprises conduct business freely  Government encourage the private sector by providing infrastructure and facilities. Price mechanism and economics plan  Price mechanism is used to price both goods and services  Government fixes the prices for all product
- 5. ï‚ž -State provides the essential services ï‚ž -Private sector encouraged for profits ï‚ž -Competition keeps prices low ï‚ž -Consumer choice ï‚ž -Inefficient business behavior controlled
- 6. Heavy taxes reduce incentives to work hard or make profits ï‚ž Less efficient than private sector ï‚ž Excessive control over business activity can add costs and discourage enterprise ï‚ž
- 7. CHARACTERISTICS OWNER SHIP DECISION MAKING PRICE DETERMINANT FREEDOM TO REAP PROFITS MIXED ECONOMY FREELY OWNED BY INDIVIDUAL AND PRIVATE SECTOR / GOVERNMENT INDIVIDUAL AND PRIVATE (SOCIAL GOODS) AND GOVERNMENT (PUBLIC GOODS) PRICE MECHANISM AND GOVERNMENT CENTRAL FREEDOM TO PRODUCE PRIVATE GOODS AND GOVERNMENT CONTROL ON PUBLIC GOODS (MINIMUM PROFITS) INDIVIDUAL FREE TO CHOICE FREEDOM OF CHOICE PRODUCTION OBJECTIVE TO MAXIMISE PROFITS AND SOCIAL WELFARE