Q:

What Countries Have a Mixed Economy?

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Quick Answer

Countries with mixed economies include Iceland, Sweden, France, the U.S, the U.K, Cuba, Russia and China. Most industrial countries have mixed economies, but vary in the degree of government involvement. For example, in Western Europe the government generally has a stronger role, while in North America the market is more influential. The only major planned economy is North Korea.

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Full Answer

A mixed economy is one in which both market forces and government actions guide commerce. The government does not control the private sector nor the goods and services available. However, the government is able to intervene in the economy through such methods as the taxation and regulation of goods and services, subsidization of certain goods and services and the redistribution of wealth, such as though public housing, social programs and food stamps. During times of economic hardship, such as during a recession, the government can create policies to provide economic stability.

This is in contrast to market and planned economies. A market economy is one that is primarily directed by businesses and consumer demand, with little government intervention. A planned economy is one in which the government controls the production of goods and services. Communism and socialism are types of planned economies.

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Related Questions

  • Q:

    Why is Australia considered to be a mixed economy?

    A:

    Australia is considered to be a mixed economy because it is characterised by private enterprise coupled with strong regulatory oversight by the government and government provision of public goods such as roads. In 2011, Australia ranked third on the Economic Freedom Index and second on the United Nations Human Development Index.

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  • Q:

    What are some characteristics of a mixed economy?

    A:

    Since a mixed economy includes a mix of both private and government control, it reflects characteristics of both capitalism and socialism. The balance between the two ideals can vary greatly between countries, sometimes leading to a lack of consensus on whether the economy is capitalist, socialist or mixed.

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    What are the pros and cons of a mixed economy?

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    What countries have a command economy?

    A:

    As of 2014, Iran, Cuba, China and North Korea have command economies. In a command or planned economy, a central government authority formulates economic decisions, and the government implements each plan through legislation, directives and regulations. Suppressing free-market forces allows governments to reach specific societal objectives.

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