What is the role of taxes in a mixed economy?

Economics Mixed Economy Questions



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What is the role of taxes in a mixed economy?

The role of taxes in a mixed economy is to generate revenue for the government, which is then used to fund public goods and services such as infrastructure, education, healthcare, and social welfare programs. Taxes also serve as a tool for the government to regulate and influence economic activities, redistribute wealth, and promote economic stability and growth. Additionally, taxes can be used to address market failures, correct externalities, and promote social and environmental objectives.