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The fundamental economic problem
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| Words: 550 | Submitted: 24-Jan-2010
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DescriptionThe fundamental economic problem
A economics problem by several ways. A mixed economy is a mixture of a pure free-enterprise market economy and a command economy. Nearly every country in the world operates a mixed economy although the "mix" can change. There is a private sector and a public sector in the economy. In recent years many command economies have become mixed economies. Examples include countries that were part of the former Soviet Union. To become a mixed economy, the role of the market and the private sector of the economy must be increased. This can be done in a variety of ways such as privatisation of state industry,de-regulation of markets promoting increased competition through the entry of new firms,a gradual ending of state subsidies, and encouraging foreign investment into the economy.
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