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An economic system in which the government imposes boundaries on capitalism to limit the concentration of power and achieve social balance. The U.S. economic system is a mixed economy.
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A mixed economy is an economic system that is variously defined as containing a mixture of markets and economic planning, in which both the private sector and state direct the economy; or as a mixture of public ownership and private ownership; or as a mixture of free markets with economic interventionism.[1] Most mixed economies can be described as market economies with strong regulatory oversight and governmental provision of public goods. Some mixed economies also feature a variety of state-run enterprises.
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The mixed economy is
an economy in which both publicly and privately owned enterprises operate simultaneously.
Mixed economy consists of capitalism or free market under check by government as regards monopolies and oligopolies etc. So it has components of both free market as well as regulated market.
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Indian economy is a mixed economy
1-In reality most economies are mixed, with varying degrees of state intervention.
2-A mixed economy means that part of the economy is left to the free market, and part of it is run by the government.
3-Mixed economies start from the basis of allowing private enterprise to run most business. Then the governments intervene in certain areas of the economy, such as regulation, and spending money on public services.
A-Hong Kong18.6%
B-China –20% of GDP
C-Sweden (52%)
D-United Kingdom47.3%
E-United States38.9
Some economies are mixed. Some of economy is managed by the government, the rest left to private firms and individuals.
However, there are different degrees of state intervention. European economies such as Sweden and France have a generous level of social security spending. Education and health care are free at the point of US. In the US, government spending as a share of GDP is lower, but health care has to be paid for.
As economies develop, the government often takes a higher share of total spending. Developed countries, such as in Western Europe, often choose to provide state welfare support, and greater government regulation of the environment and business environment and depends upon the regulatory authority of state.
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