he government of Junta took Fuel Safe Corp., a domestic energy firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the energy industry were enraged by this decision. As a result, the government had to reduce the tax burden on all private energy firms so that both the state-owned enterprise and private firms could coexist. What type of economy does this portray?

Question

Taniya

Business

2 June, 00:20

he government of Junta took Fuel Safe Corp., a domestic energy firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the energy industry were enraged by this decision. As a result, the government had to reduce the tax burden on all private energy firms so that both the state-owned enterprise and private firms could coexist. What type of economy does this portray?

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Answers (1)

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Kalan · Answer 1

Answer: Mixed economy

Explanation:

A mixed economic system is a form of economic system that combines private and state enterprise. A mixed economic system combines aspects of capitalism and socialism. A mixed economic system safeguards private property, allows a level of economic freedom during the usage of capital, and also allows governments to interfere in the economic activities so as to achieve social aims.

The example in the question shows that the private and public sector are playing a role in the economy and hence, it's a mixed economy.