Answer to Question #209891 in Macroeconomics for Omolemo

Question

Discuss in an essay the advantages of a mixed economy

Answer 1

Efficient allocation of resources

Resources needed for production process especially in a private sectors are easily allocated facilitating in the progress of the market as the customers are met on time. Employees concentrate on the roles assigned keeping in mind that they cannot give a reason about the resources for failure. The firm become more competitive when the resources are easily available resulting to their competitive advantage. There is higher innovation and production efficiency resulting to customers satisfaction and value for money. Innovations results to new products design according to the specification provided by the customers.

Production facilities are highly integrated to produce quality products to adhere to total quality management guidelines leading to global performance in the firms. Operation economically is easily rewarded with profits earning and competition. Companies are encouraged to invest cash in order to acquire manufacturing efficiency and good deals for their customers. A mixed market enjoys government support in their business operation to avoid case where the private company may neglect some essential services and focus on profit marking. The government provides supports the key industries such as education, defence and other customers essential services. The governments improves the welfare of the society and overall benefits to the public. A mixed economy has benefits compared to other types of the economy.