--%>
Assignment Help - homework help

Disadvantages of mixed economy system

Tell me what are the disadvantages of mixed economy system?

E

Expert

Verified

The disadvantages of a mixed economy really depend on how "mixed" it is. For example, if it is mixed more towards a free-market, there is little regulation (some may see it as a good), the control may stifle growth if it is mixed more towards a command economy.

Mixed economies can also have many types of such as Each of these will share a disadvantage. A stifle profits due to it's high tax construction, but it will encourage new ideas due to its low regulation (this might result in many weird effects such as an economy comprised almost exclusively of small, well-niche businesses). B will reassure profits, but due to its regulation, some new ideas (and some growth) will be stifled. For instance, if environmental principles are strict, the construction of new plants or refineries might be lowered. This results in a small number of profitable and very large businesses.

   Related Questions in Microeconomics

  • Q : Purchasing power of a consumers income

    The modification in purchases which results since changes in relative prices modify the purchasing power of a consumer's income is termed as: (i) Adjustment margin. (ii) Income effect. (iii) Demonstration effect. (iv) Transfer pattern. (v) Replacement

    		•
  • Q : Lower rates of return by financial

    Financial assets will create lower rates of return to prospective investors while: (w) they become more liquid. (x) their prices go up. (y) interest rates increase. (z) default risks decrease. Hey

    		•
  • Q : Variation in demand and supply with

    It shifts within the demand for new textbooks from D0 to D1 may be a result of: (1) increased enrollments of students. (2) consumers' expectations of a future increase within the price of textbooks. (3) increased literacy rates. (4) increasingly efficient E-

    		•
  • Q : Excess in balance of trade When there

    When there is an excess in the balance of trade? Answer: When export > import (that is, when export is greater than import).

    		•
  • Q : Measurement of cross-elasticity of

    The cross-elasticity of demand measures as: (1) the changes in quantities sold when the price of related good changes. (2) changes within the prices of substitute goods. (3) changes within the prices of complementary goods. (4) how quantities sold cha

    		•
  • Q : Marginal revenue product curve I have a

    I have a problem in economics on Marginal revenue product curve. Please help me in the following question. Demand for the labor through a monopolist in the product market is its: (i) Value of the marginal product (or VMP) curve. (ii) Marginal revenue

    		•
  • Q : Estimate total revenue when unitarily

    When the demand for computer hard drives is unitarily price elastic among lower prices and current prices, lowering prices slightly will yield as: (w) higher total revenue. (x) lower total revenue. (y) no change in total revenue. (z)

    		•
  • Q : Annual payments of financial investment

    When the interest rate is 5 percent and a financial investment produces annual payments of $50,000, in that case the present value of this asset is as: (w) $1,000,000. (x) $5,000,000. (y) $500,000. (z) $10,000,000.

    		•
  • Q : Labor Union History-AFL-CIO merger

    Preceding to the AFL-CIO merger in the year1955: (i) The AFL was an alliance of the industrial unions. (ii) The CIO was alliance of the craft unions. (iii) Strikes over which the unions would symbolize workers were common. (iv) The union movement was limited to public

    		•
  • Q : Tourist’s use of natural resources What

    What are your views about tourist’s use of natural resources?

    		•