Notes on the Features of Mixed Economy

In mixed economy, both government and individuals perform economic activities. It is, thus, a mixed form of capitalism and socialism.

Features of Mixed Economy:

(i) Private and public sector exist side by side. Thus, economic activities are carried out by individuals as well as the government.

(ii) Private and public sectors are required to function in a properly coordinated manner.

(iii) A part from national security, government engages itself in those activities that the private enterprises consider as unprofitable or beyond this reach.

(iv) All basic and heavy industries and other strategic sector of an economy e.g., banking, transport, energy etc. are controlled by the government. Agriculture, consumer goods and other industries trade are left for the private sector.