Car Costs and New Technologies Essay Example | Topics and Well Written Essays - 1250 words

Car Costs and New Technologies - Essay Example Therefore, it does not look at the welfare of the people and the nation as a whole. On the other hand is the socialist economy. Most of the economists believe that government intervention and holdings are less efficient as they do not answer to the price changes or the change in the demand of the consumers. This is because the government relies on the tax collection for its revenues and less worried about the demand situation (US Department of State, 2010). Â  But still, most of the countries adopt some form of the mixed economy in allocating resources because they believe that both the private and the public sector play an important role. A mixed economy is a blend of free market and socialism. It is an economy that has a lot of freedoms but at the same regulations from the government keep a constant check. Â  The economists of these nations believe that some of the industries are better under the control of the government while others are better off under the supervision of the private entrepreneurs. For example, The development of the infrastructure; road, rail, air, and port, administration of justice, defense of the nation and education is under the control of the government. At the same time, there are certain institutions where the government intervenes in the market to settle out the price levels such as utilities, agriculture, and water. In this way, it regulates these likely monopolies (US Department of State, 2010). For example, Water and Power Development Authority keep a check on the charge of electricity in Pakistan keeping the best interests of the economy at heart. At the same time, the government regulates the private sector by creating standards and policies to guard the consumer interests and increase the welfare of the people.