Question

What are the demerits of mixed economy?

• A. Unstable economy
• B. No control on private sector
• C. Delay in economic decision
• D. All of the above

Answer 1

Answer: (A), (C)

Unstable economy
Delay in economic decision

Co-existence of public and private sector, individual freedom and economic planning are the features of mixed economy. India is the best example for this type of economy.

• Merits of mixed economy includes: encouragement of private sector, efficient use of resources, due to private ownership competition exists and production becomes efficient, income inequalities will be reduced.
  
• Demerits include: the economy is unstable due to existence of private ownership. Decision making is delayed.