MIXED ECONOMY

This description of the three major economic systems should have made one thing clear: few nations have pure capitalism, pure socialism, or pure communism. The term mixed economy has become popular to describe those economies that have a mix of socialism and private enterprise. In Sweden, for example, 90 percent of pro duction is carried on by private enterprises. Even the economy of the United States could be considered mixed because some public utilities such as the Tennessee Val ley Authority (TVA) are government-owned.

Please visit our Instyler review page.

In a mixed economy such as ours, the people enjoy many economic freedoms. Key decisions in our economic system are made by three groups: consumers, producers, and the government, as pictured in figure 2.3. Although you may think of yourself as a consumer only, most people are a part of all three groups. In this section, we will explore in detail the roles of consumers, producers, and governments, and we will see how you are involved in each of these roles.

Next Page »