Mixed Economic System
Most
countries adopt a mixed economic system. A mixed economic system is a
combination of the command economic system and the free market economic system,
to get the best of both worlds. In this system individuals decide what to
produce, for whom to produce and how to produce. The government does intervene,
to stop market failures, decrease unemployment, help the people in need and
make equality. The government's role is greater than in free market economy,
but less than in a command economy. One
of the key characteristics of this economic system is that it gives people
freedom so that they can determine what they want to buy, choose their own
career and the ability to start a business. There is public and private
ownership of resources, so that the government doesn't own everything like the
command system. The mixed economic system is widely used today as it solves the
basic economic problems.