How does a mixed economy promote sustainable development?

Economics Mixed Economy Questions



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How does a mixed economy promote sustainable development?

A mixed economy promotes sustainable development by combining elements of both market-based capitalism and government intervention. This allows for the efficient allocation of resources through market forces while also addressing social and environmental concerns. The government can regulate and enforce policies to protect the environment, promote renewable energy sources, and ensure fair labor practices. Additionally, it can provide public goods and services such as education, healthcare, and infrastructure, which contribute to long-term economic growth and social well-being. By balancing the interests of both private businesses and public welfare, a mixed economy can foster sustainable development by considering economic, social, and environmental factors.