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.