ZIMSEC O Level Business Studies Notes: Mixed Economy
• Incorporates both aspects of the planned and free market economies
• There is a public sector which consist of government owned entities and
• A private sector which consist of private owned entities.
• Public sector entities aim to provide a service while
• Private sector businesses have a profit motive.
• There is moderate government control e.g. via the fiscal and monetary policies.
- Is made up of entities that are owned and controlled by the local and national government (and the Federal government where one exists).
- These entities exists mainly to provide a service rather than to make a profit.
- Sometimes they have an excess of income over expenditure.
- This is known as a surplus.
- Examples of business organisation in the public sector in Zimbabwe include GMB, ZRP, NocZim, Netone, Teleone etc.
- Is made up of entities that are controlled and owned by private individuals.
- These exists mainly to make a profit.
- Examples include sole trader businesses, partnerships and companies.
- Examples of entities that are in the private sector in Zimbabwe include TM, OK, Spar etc.
• Consumers are free to choose what they want.
• All products including public products are produced.
• Social costs are internalized through taxes.
To access more topics go to the Business Studies Notes page.