• GOVERNMENT

    MIXED ECONOMY

    Mixed economy is an economic system that accommodates two different ideologies: capitalism and socialism. Therefore, it is an economic system where the means of production of goods and services, distribution and exchange are in the hands of both the state (government) and private individuals.   Characteristics or features of mixed Economy Competition: There are some degree of competition in the production and distribution of goods and services in the system State and private individuals: They share identical views on issues of national importance and equally contribute towards economic development of the state. Means of production: The means of production, distribution and exchange of goods and services are in the hands…

  • CAPITALISM
    GOVERNMENT

    CAPITALISM

    Capitalism can be defined as an economic system in which the means of production, exchange and distribution of goods and services are in the hands of private persons, providing or borrowing the necessary capital and taking the profits after all the costs of the production have been met. However, it should be noted that government’s participation in production is very low in capitalist economy. Private individuals have an edge over the government in this area. U.S.A. is a good example of a capitalist economy.   Features of Capitalism Consumer sovereignty: Choices are made by the people; they decide how to spend their money. Production: What to be produced is based…

error: Content is protected !!