OBJECTIVES

England is a country of 63.7 million people. Her economy is the largest economy of the four countries of the UK. UK has importance in textiles and chemical products, beside these the automobiles, locomotives and aircrafts are also the important industrial products. UNITED KINGDOM has the the 3^rd in the Europe and 6^th largest national economy in the world by the nominal GDP. ENGLAND is a mixed economy’s country, beside other country such as ICELAND, SWEDEN, FRANCE UNITED STATES, RUSSIA, CHINA and HONG KONG. These are the countries’ economy is mixed, in those economy society some of the part is manged by the government and the rest it controlled by the private firms and the individuals.

Being the mixed economy the ENGLAND has to face some advantage and the some disadvantage. In below we will find its total idea.

Definition of pure command, free market and the mixed economy

Pure command economy: When any economy is fully controlled by the government, the government decide the allocation of the resourses and they answer the three questions of allocation. This type of economy is theoretical extreme example of economy, it the real world it does not exits, we just use this type of theoretical example for the comparison of the real world economy. Through laws, restrictions, regulations and the involuntary taxes the government force all allocation. In this type of economy the Government set the rules for the people, and if they do not follow the rules they will be punished. The communistic CHAINA and the former SOVIET UNION are the good example for the pure command economy.

Five characteristics of the pure command economy

1. According to the need of the nations the government provides the goods
2. The government regulated the all price and moreover the public good will be the available for the public needs
3. The salaries, wealth will be the same for every body
4. There will be common goals, the technology will be seen the greater advantage because of the resources are being allocated correctly to achieve the goal
5. No unfinished project, no inflation and the low unemployment.

Free market: This type of economy is based on with the little or without any government control on the supply and the demand. In this type of economy market, the buyers and the sellers are allowed to business freely, where the mutual understanding on price is found and we will not find any form of taxes, subsides or regulations.

In the simple way a full free market is summary term for an array of exchanges that take place in society, here the agreement is free and mutual understanding for service or good between two parties .

Mixed economy: In the mixed economy system we will see variety of the government and the private control, its looks like the combination of the socialism and the capitalism.

We can’t find a single mixed economy’s definition, where we will find a degree of the government regulation of the markets and the a degree of the economy freedom. We can describe the mixed economy as the market economies with the strong administrative overlooking.

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England as a mixed economy

England has the one of the biggest economics of the world, in this economy the Private and the Public contribution is same. Here the public ownership has been reducing since last two decades. While England was first industrialization in the 1800, the economy of England has shifted towards the service sectors over the years.While the industrialization was growing up rapidly, the service sectors were also developing significantly.

Under the government of Margaret Thatcher in the 1980s, the most of the state owned enterprises in the service and the industrial sectors were privatised since it was nationalised at 1940s. Now UK government owns very few of the industries such as the Royal mail.

Advantages of Mixed Economy

There are many reasons why many country choose the mixed economy for the economic development. In below we can see some discussion about that.

(1) Job security

To maximise the profits is the aim of the priva