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How does a mixed economy emerge?

Alternatively, a mixed economy can emerge when a socialist government makes exceptions to the rule of state ownership to capture economic benefits from private ownership and free market incentives. A combination of free market principles of private contracting and socialist principles of state ownership or planning is common to all mixed economies.

Can a mixed economy turn into a system of coercive government?

Without such support, the mixed economy can turn into a system of coercive government manipulated by powerful stakeholders. mixed economy, in economics, a market system of resource allocation, commerce, and trade in which free markets coexist with government intervention.

What is a mixed economic system?

A mixed economic system accepts private property and permits economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims. According to neoclassical theory, mixed economies are less efficient than pure free markets.

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