. Has a private sector & a public sector.
. A government can try to correct market failures in a mixed economic system.
. It can allocate scarce resources to provide goods
and services that people need.
. Can introduce laws and regulations to control
harmful activities.
. Government Intervention
1) Produce merit goods such as education for the needy.
2) It can provide public goods such as street lighting.
3) Public sector can employ people and
welfare benefits can be given to the needy.
4) Laws to make goods illegal or high taxes
to reduce consumption.
5) Laws and regulations would protect the
natural environment.
6) Monopolies can be broken up or regulated
to keep prices low.
. A government can try to correct market failures in a mixed economic system.
. It can allocate scarce resources to provide goods
and services that people need.
. Can introduce laws and regulations to control
harmful activities.
. Government Intervention
1) Produce merit goods such as education for the needy.
2) It can provide public goods such as street lighting.
3) Public sector can employ people and
welfare benefits can be given to the needy.
4) Laws to make goods illegal or high taxes
to reduce consumption.
5) Laws and regulations would protect the
natural environment.
6) Monopolies can be broken up or regulated
to keep prices low.