Question

What is your initial concept of a mixed economy?

Why do you think there should or should not be public involvement to maintain the welfare of the economy?

Answer 1

A mixed economy is a system that combines both traditional and command economy or market and command economy . It protects private property , allows free market forces to act ,  driven by the motivation of the self-interest of individuals . Also government safeguards laws and market , government may own key industries , trading controls and can do social welfare programmes . Government has a large role in the military, international trade and national transportation .

There should be public involvement to maintain the welfare of the economy . Private sector does not invest in education and healthcare for poor and unpriveleged . Only the government can provide for such goods which creates positive externalities . Free market economy sometimes leads to exploitation and concentration of wealth which can be prevented by the government .