Question

Explain the main merits and demerits of mixed economy.

Answer 1

Merits of Mixed Economy	Demerits of Mixed Economy
(a) Encouragement to Private Sector	(a) Un-stability
(b) Freedom	(b) Ineffectiveness of Sectors
(c) Optimum Use of Resources	(c) Inefficient Planning
(d) Advantages of Economic Planning	(d) Lack of Efficiency
(e) Lesser Economic Inequalities	(e) Delay in Economic Decisions
(f) Competition and Efficient Production	(f) More Wastages
(g) Social Welfare	(g) Corruption and Black Marketing
(h) Economic Development	(h) Threat of Nationalism