An economic system is an organisation for the purpose of satisfying human want to the utilisation of natural resources according to W. W Loucks "An economic system consists of those institution which are given people organisation or group of nation has chosen or accepted as the means through which there resources are utilised for the satisfaction of human wants." Institution are a set of norm rule of conductor established way of Thinking such as private property money business corporation government Tax Planning etc. economic system differ according to the nature of economic Institutions which the people choose for the satisfaction of their want.
Merit of Mixed Economy
- mixed economy allow the existence of private property and right of inheritance to keep the private initiative alive at the same time the government keep these Institution and they check so that these may not be used for exploitative purpose.
- mixed economy permit individual freedom consumer are free to buy good and services from any seller in any quality factor production in any occupation and private initiative is always encourage to find its best possible use.
- mixed economy adapt the technique of economic planning for rational allocation of resources and to attend high rate of economic growth Rapid economic development is ensured through the growth of complementariness between the public and the private sectors.
- in a mixed economy various policies of Government are formulated to reduce inequalities of income equal status curve exploitative tendencies and concentration of economic power in a few hand mixed economy is guided by the greatest good of the greatest number other than the individual gains.
