Mixed Economy Flashcards
1
Q
What is a mixed economy?
A
A mixture of the free market economy and the command economy
2
Q
What are the characteristics of a mixed economy?
A
Some resources are allocated by the price mechanism while others are allocated by the state.
3
Q
What is the role of the state in a mixed economy?
A
-defence and internal security
-provision of public goods
-provision of public services such as education and health
-redistribution from the rich to the poor
