Mixed_Economy_6_Slides

1.

PRESENTATION
ECONOMIC SYSTEMS
MIXED
ECONOMY
How private enterprise and
government work together

2.

02 / 06
What is a mixed economy?
A system based on both private enterprise and government action
“A blend of private enterprise,
government ownership, and
government planning.”
THE BASIC ECONOMIC PROBLEM
SCARCITY
CHOICE
TRADE-OFFS
Limited resources
Unlimited wants
Decisions have a cost
MIXED ECONOMY
MARKET + STATE

3.

03 / 06
Main characteristics
Four ways the private and public sectors share responsibility
Private ownership
Public services
Shared provision
Taxes
Firms produce goods to make a
profit.
The state finances essential
services.
Both sectors may provide
healthcare and education.
People pay taxes to fund state
services.
MIXED ECONOMY

4.

04 / 06
Advantages
What a mixed economy can do well
01
Economic freedom
Competition and consumer choice encourage better products.
02
Public services
The state can provide services that are important for society.
03
A useful balance
Private innovation combines with rules that protect people.
CHOICE • ACCESS • INNOVATION
MIXED ECONOMY

5.

05 / 06
Disadvantages
Each benefit can involve a trade-off
01
02
03
Taxes
Inefficiency
Conflicting goals
Public programmes need funding.
State-owned firms may waste resources.
Private profit can clash with the public interest.
Taxes, regulation and efficiency all require careful decisions.
MIXED ECONOMY

6.

06 / 06
Examples of countries
The mixture is different in every country
UNITED KINGDOM
GERMANY
SWEDEN
Market + public services
Social market economy
Private sector + welfare
Private firms work alongside services
such as the NHS.
Competition combines with regulation
and social protection.
Businesses compete; taxes support
extensive public programmes.
Same model — different balance between market and state.
MIXED ECONOMY