Mixed economic system

France operates as a mixed economy. Over the last few years, its labour market has undergone several changes. A larger share of workers are now employed in the tertiary sector, while fewer work in the primary sector. Average working hours have gone up and employees in the public sector have had pay increases.

Feb/March 2018

What type of business is always part of the public sector?

Feb/March 2019

Into which category would a state-owned oil refining firm fall?

Feb/March 2021

Sweden uses a mixed economic system. During 2018, it was producing at a point inside its production possibility curve (PPC). In 2018, the country’s schools hired almost 2500 additional teachers. Some of them had earlier worked as actors. More of them had previously been government officials responsible for regulating Swedish monopolies.

Feb/March 2021

What is present in a mixed economy but not in a market economy?

May/June 2015

Malaysia has a mixed economy. Which statement about a mixed economy is definitely correct?

May/June 2015

Which situation shows a mixed economy?

May/June 2019

In contrast with the UK and US, a substantial share of the stocks traded on the stock exchanges of China and Russia belongs to state-owned enterprises. What conclusion about China and Russia can be drawn from this information?

May/June 2019

Within a mixed economic system, such as Portugal’s, the government has a role in the economy. Government intervention can be used to deal with market failure and to meet economic aims, such as keeping inflation under control. In 2017, one-fifth of Portugal’s population was living in poverty and government spending increased.

May/June 2019

China is shifting towards a more mixed economic system and cutting back the role of the public sector. Which economic policy measure would be most suitable for achieving this?

May/June 2022

Which pair is most likely to be supplied by the private sector in a mixed economy?

May/June 2023

Indonesia uses a mixed economic system. Bank Indonesia, the central bank of Indonesia, targets stable prices. Changes in population size can affect the country’s price level. Indonesia’s population is still rising, although the pace of growth has slowed. A number of industries in the country are expanding, with Indonesian domestic and international air travel growing especially quickly.

May/June 2024

Within a mixed economy, production is carried out by

Oct/Nov 2015

Peru has been shifting in recent years from a mixed economic system towards a more market-based one. One result has been that more small firms have been started. The short-run objective of some small firms is profit maximisation, whereas others are focused on growth. In the long run, both of these objectives may be achieved. Some small firms expand into large firms that are quoted on their country’s stock exchange.

Oct/Nov 2016

In a mixed economy, what is the government most likely to produce?

Oct/Nov 2017

The government has a significant role in mixed economies. Which function would it not carry out?

Oct/Nov 2019

Who is the owner of a public sector organisation?

Oct/Nov 2020

Russia’s birth rate declined by 11% in 2017, reaching its lowest point for ten years. Over the next 30 years, Russia’s population is predicted to fall from 144 million to 107 million. The government announced steps intended to reverse this drop in population. In 2017, it also announced privatisation plans and measures designed to reverse a decline in investment that could result in a fall in the quantity of capital goods. Privatisation can reduce monopoly power in a market.

Oct/Nov 2020

For what reason does a government supply certain goods and services in a mixed economy?

Oct/Nov 2021

Study the source material carefully before you answer Question 1. Source material: India’s airline industry Air India belongs to the Indian government. As new firms have entered India’s air travel market, Air India has become less able to choose the price. This state-owned business competes not only with other airlines but also with other transport options, including trains and ships. In 2017, the Indian government attempted, but failed, to sell Air India to the private sector. If the sale had succeeded, it would have brought in money for the Indian government and could have improved the airline’s efficiency. It is forecast that by 2025 India will have the third-largest airline industry. Expansion in the industry may influence India’s current account position in its balance of payments. Table 1.1 shows the current account position for India and four other countries. An increase in both the number of routes operated and the standard of the passenger experience may raise the number of tourists going to India. A bigger Indian airline industry is likely to make it easier for people and goods to move into and out of India. This could draw in more multinational companies (MNCs) and lower firms’ production costs. India’s air travel market faces several problems. India has the highest airline fuel tax in Asia. Some economists argue that this should be raised again to increase tax revenue and cut market failure. Airlines’ other costs are rising, but it is hard for them to put prices up. This is because India’s air passengers are among the least price-sensitive in the world. Some airlines prevent their costs from rising further by improving staff training, introducing new technology and improving pilots’ working conditions. Airlines’ ability to recruit pilots is affected, among other things, by the quality of education and by other job opportunities.

Oct/Nov 2021

In Tunisia, decisions about resource allocation are taken by both the public sector and the private sector. Tunisia’s GDP rose between 2014 and 2018, yet households saved less. Income levels can be influenced by changes in trade union activity and in the foreign exchange rate. From 2014 to 2018, Tunisia saw several strikes arranged by its biggest trade union, the Tunisian General Labour Union. Its foreign exchange rate also fell sharply.

Oct/Nov 2021

A government chooses to shift towards a market economy by privatising state-owned enterprises. What could be a reason for doing this?

Oct/Nov 2022

Source text: Changes in the economy of Montenegro Montenegro is a European country where the private sector has grown in importance. By 2020, 90% of state-owned firms had been privatised. All commercial banking, telecommunications and aluminium production has moved into private ownership. The country's banks now possess more computers, more employees and more office buildings. In most years, Montenegro receives three times as many tourists as the size of its resident population. Tourism is a highly competitive market. Holiday demand is price-elastic, which affects firms' pricing decisions in the industry. The share of workers in tourism and other tertiary sector industries has risen. In 2020, 75% of Montenegro's labour force were employed in the tertiary sector. Some workers in the primary sector assist with growing and exporting oranges. A minimum price has been proposed for oranges and some other crops. Movements in the price of a country's exports can influence both the trade in goods and services balance and the current account balance of its balance of payments. Table 1.1 shows selected information on the balance of payments of six East European countries in 2020. A country's position in international trade is affected by the amount and pattern of consumer expenditure. Privatisation has influenced consumer spending. The shift to the private sector has changed investment, the number of workers employed and competition in those industries. It has also changed firms' aims, prices and how quickly they react to changes in consumer demand. In 2020, Montenegro had very low inflation. It was anticipated that this might become deflation. A drop in the price level could affect the country's output, employment and balance of payments.

Oct/Nov 2023

For what reason does a government supply some goods and services in a mixed economic system?

Oct/Nov 2024

Luxembourg is a nation with a high degree of economic development. Its government steps in to try to reduce some of the drawbacks that may arise in a market economic system. Some firms in the country sell in competitive markets, whereas others are monopolies. Households in the country save a large share of their income. The chief reason for the country’s population growth is immigration.

Oct/Nov 2024

Which combination shows the characteristics of the mixed economic system?

Oct/Nov 2025