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What does the government control in a mixed economy?

Sagot :

Governments control in a mixed economy may seek to redistribute wealth by taxing the private sector and by using funds from taxes to promote social objectives.Economies with mixed markets enable consumers to economic decisions.

Mixed Market aids in preserving privacy business. It permits government regulation, interference. It also enables customers to choose. Consequently, mixed-market economies permit consumers to make rational decisions. Trade protection, subsidies, targeted tax credits, fiscal stimulus, and public-private partnerships are common examples of government intervention in mixed economies. These unavoidably generate economic distortions, but they areinstruments to achieve specific goals that may succeed despite their distortionary effect.Countries often intervene in markets to promote target industries by creating agglomerations and reducing barriers to entry in an attempt to achieve a comparative advantage.

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