Mixed Economy

• A mixture of free enterprise and state controlled
• Some resources owned by the State and some by private individuals
• Businesses make decisions & the Government try to influence and control some areas such as Taxes & Laws.

Advantages

• Government control should eliminate any waste resulting from competition between firms.
• There should be work for everybody.
• The needs of the population are met, but there is little production of luxury goods for the wealthy.

Disadvantages

• There is less incentive to work as the government fixes wages and private property is not allowed.
• The government may not produce goods which people want to buy.
• The lack of a profit motive for firms leads to low efficiency.