Answer to Question #103718 in Microeconomics for Carol yonela

Question

How does the mixed economic system have the same disadvantages as market capitalism?Discuss.

Answer 1

Disadvantages

1. if the market has too much freedom, it can leave the less competitive members of society without any government support.
2. mixed economies tend to lean more toward government control and less toward individual freedoms.
3. The government decides the amount of tax on products, which leads to people complaining about high taxes and their unwillingness to pay them. Moreover, lack of price control management can cause shortages in goods and can result in a recession.