English assignment

“Mixed Economis System”

Compiled by: Group 2

1. Budiman (554321024)
2. Arul Kurniawan (554321077)
3. Fardan Fathur Rahman (554321033)
4. Sendi Ridho Awaludin (554321045)
5. Mia Fitriani (554321039)
6. Inggit Eka Mardiana (554321014)
7. Dian Gustiani (554321015)

PROGRAM STUDI PENDIDIKAN AGAMA

SEKOLAH TINGGI ILMU EKONOMI STMY MAJALENGKA
2021
 Preface
First of all, thanks to Allah SWT because of the help of Allah, writer finished writing the
paper entitled “mixed economic system” right in the calculated time. The purpose in writing
this paper is to fulfill the assignment that given by Mr.Iwan Hasan Asyari, S.Pd, MM. as
lecturer in an English subject. in arranging this paper, the writer trully get lots challenges and
obstructions but with help of many indiviuals, those obstructions could passed. writer also
realized there are still many mistakes in process of writing this paper.because of that, the
writer says thank you to all individuals who helps in the process of writing this paper.
hopefully Allah replies all helps and bless you all.the writer realized that this paper still
imperfect in arrangment and the content. then the writer hope the criticism from the readers
can help the writer in perfecting the next paper.last but not the least Hopefully, this paper can
helps the readers to gain more knowledge about mixed economic system.

Majalengka, September 27th, 2021

 TABLE OF CONTENTS
PREFACE............................................................................................................................ i
TABLE OF CONTENTS.................................................................................................... ii
CHAPTER I INTRODUCTION......................................................................................... 1
1.1 BACKGROUND........................................................................................................... 1
1.2 FORMULA OF PROBLEM.......................................................................................... 1
1.3 PURPOSE...................................................................................................................... 1
CHAPTER II LANGUAGE................................................................................................ 1
2.1 UNDERSTANDING MIXED ECONOMY.................................................................. 1
2.2 PRODUCTION OF GOODS IN A MIXED ECONOMY SYSTEM........................... 2
2.3 DIFFERENCE BETWEEN MIXED ECONOMY AND FREE MARKET................. 2
2.4 MIXED ECONOMIC HISTORY................................................................................. 2
2.5 MIXED ECONOMY GOALS....................................................................................... 3
2.6 MIXED ECONOMY CHARACTERISTICS............................................................... 3
2.7 ADVANTAGES OF MIXED ECONOMY.................................................................. 4
2.8 DISAVANTAGES OF MIXED ECONOMY............................................................... 4
CHAPTER III CONCLUSION........................................................................................... 5
3.1 CONCLUSION............................................................................................................. 5
BIBLIOGRAPHY............................................................................................................... 5
 CHAPTER 1
INTRODUCTION
1.1 Backround
The fundamental difference between one economic system and another
economic system is how it regulates it’s production factors in most of the world’s
economic system is in the two extremes of capitalists and socialists.But also many
were not successful in aplying it.Because of the adoption of the two system,
sometimes some resort to capitalists or vice versa.Since the discussion is so
interesting for further discussion, we will discuss the matter in our paper.

1.2 Formula of Problem

In the drafting of this paper, we formulated some of the problems that will
Review as follows :
 What is a mixed economic system?
 What are some of the policies of mixed economic systems?
 What’s the progress of the mixed economic system?
 What are the advantages and weaknesses of a mixed economic system?

1.3 Purpose
 Knows how the mixed economic system has developed so far
 Knows the characteristics of those economic systems.
 And know the strengths and weaknesses of the economic system.

Hopefully it can be useful as one of the information or library reviews for

short economic fundamentals.It could also be used to add significance to our
knowledge in the basic knowledge of economics and in the development of other
economic materials.

CHAPTER II
LANGUAGE
Mixed Economic System: Definition, Advantages and Disadvantages
Each country adopts a different economic system, depending on the needs, policies
and agencies involved in it. Well, on this occasion, we will share knowledge about the
meaning of a mixed economic system, complete with its advantages and disadvantages.

2.1 Understanding Mixed Economy

In an economic body, in it there is a market system of resource allocation and trade
free market policies side by side with government intervention. The implication is that a
mixed economic system can arise when the government intervenes in the free market
mechanism by creating state-owned enterprises, regulations, subsidies, taxes, and certain
tariffs.
Another definition of a mixed economic system is a system that mixes the
characteristics of the market, policy and traditional economy of the place. This economic
system also has several characteristics of economic policies in certain fields that are
considered strategic. This is done so that the government is able to protect the people and the
market mechanism in it.

2.2 Production of Goods in a Mixed Economic System

Countries that adopt a mixed economy are almost certain to be able to produce all
goods, including food, shelter, or other goods that can only be found in capitalist society,
such as expensive luxury cars or very rare jewelry.
In it you can also find various items that may only be found in a socialist economic
system, where there are some things that are used only for the common good.

2.3 Difference Between Mixed Economy and Free Market

• Free market
A free market means that there is little or no government influence over the economy or
privately owned businesses and individuals operating in them. The company or agency
operates solely for personal gain, and the price of the goods has been fully determined by the
bidder or on the basis of market demand.
In theory, there is no limit to the ability of firms to mix or shape the economy. In a free
market, each individual has full control over the economy in it without any government
intervention.
• Mixed Economic System
On the other hand, in a mixed economic system, the government has a very important
role. They will make regulations that limit monopolies or require businesses to be able to
carry out certain safety requirements for their workers.
Businessmen may operate on the basis of personal profit, but in a mixed economic system
they are required to conduct their business within the limits set out in the laws of the country.

2.4 Mixed Economic History

Mixed economic systems have historically been created as a product of pilot projects
due to long economic woes, and these economic systems have evolved over time.
An early example of its enforcement is the corn law which was enacted in England in
the 1800s, which regulates the export and import of grain. The law was created to protect
local farmers against foreign competitors.
In the early 1900s, many economists and government officials in various western
developed countries believed that the free market was the best bet for improving social life.
However, due to the Great Depression, the entire stock market and economy in the world
collapsed, this at the same time exposed the weakness of the principles of the free market.
In the United States, the "New Deal" is seen as one of the great ways the government
influences the economic system and provides various social safety nets for the American
people.
After that, this mixed economic system was implemented in places where the
government traditionally controlled the economy. However, in recent decades, communist
countries such as Russia and China have adopted an approach in which they adopt principles
that are in fact more capitalist.

2.5 Mixed Economy Goals

In a mixed economic system, the government as the controlling and supervising party
will cooperate with various private parties to be able to run the economy, so it cannot be
denied that government intervention in this case has the following objectives:
• The government will tend to exercise more control and supervision over the economic
actions of its citizens' businesses. Thus, this economic system is able to produce more
secure economic stability, so that they can focus more on increasing the success of
SMEs.
• The government will provide social security and income distribution to its citizens.
This is done so that its citizens are able to get more equitable economic stability.
• Avoiding monopolies, because the government will supervise and control price fixing,
even though the government will conduct a study on market mechanisms.
• Provide freedom for each individual to be more creative in doing business, so that
later there will be many types of business in the free market, but still under
government control.
• The government is authorized to create regulations and fiscal or monetary policies in
it so that the economic system can run smoothly without economic problems such as
unemployment or other causes that can lead to high inflation.
Although this system of economic supervision and control is carried out by the
government, various obstacles in its implementation still involve the private sector, such as in
determining the maximum limit for each citizen to carry out economic activities and sources
of production carried out and supervised by the government.
So, it can be concluded that the mixed economic system was created in order to increase
the progress of the small and medium business sector, as well as to give freedom to its
citizens to be able to do business for profit or profit.

2.6 Mixed Economy Characteristics

The economic system that has been adopted by a country usually has the following
characteristics:
• The government and the private sector are required to play an active role and continue
to cooperate in carrying out all forms of economic activity.
 • The government will give freedom to the private sector to carry out economic
activities, but still with restrictions and intervention if needed at any time.
• The government will carry out plans, regulations, and policies that are closely related
to the economic system.
• Competition in the market still occurs but within reasonable and clean limits because
the government participates in supervising and intervening.
• Market mechanisms can determine the various types, quantities of goods produced,
and the selling price of these goods.
• The government has the right to manage and regulate all important resources that
concern the interests of many people's lives.
• The government and the private sector have the same role in terms of economic
activity.

2.7 Advantages of Mixed Economy

• Distribution of goods and services will be allocated to where it is most needed. Thus,
this will make the price affect the level of market supply and demand.
• Able to provide benefits to producers who have succeeded in creating efficiencies in
their business. It also means that customers are able to get the best value or service for
every money they spend.
• Encouraging innovation to meet customer needs more creatively, cheaply and
efficiently.
• Allocate capital to each of the most innovative and efficient producers.
• Able to minimize losses from the market economy mechanism. A market economy
can ignore areas such as defense, technology and aerospace. This very large role of
the government allows for rapid mobilization to areas that have been prioritized.
• Domestic economic development will tend to move faster due to free competition
which in turn will create many product variations that appear on the market with
various product details.

2.8 Disadvantages of Mixed Economy

• If the level of freedom that occurs in the market mechanism is too large, it can make
less competitive producers fall further behind without government support.
• The government has a greater responsibility than the private sector.
• Government centralized industrial planning can also create problems. For example, an
industry engaged in defense will have a monopolistic or oligarchic nature and be
subsidized by the government. This will increase the national debt and slow down the
pace of the economy in the long term.
• The private sector is not able to maximize its profits because there is intervention
from the government.
• Although the government plays an active role in the economy, the economic problems
that occur in it such as inflation, unemployment and others cannot be avoided.
• Economic growth will tend to be slower than the liberal economic system.
• Restrictions on production sources owned by the government and the private sector
will be difficult to determine.
 • Equitable income is quite difficult to be realized in the field.

CHAPTER III
CONCLUSION
3.1 Conclusion
Public policy makers in mixed economic systems must be able to balance their
concern for individual freedom in doing business with the needs of a just society.
The balancing process must be carried out with integrity and procedural law with the
participation of various segments of society, especially for stakeholders who are active and
dynamic for the realization of a just and appropriate economic system.
Therefore, success in this mixed economic system depends on the integrity of support
from the government and social segments regarding various ethical principles of compassion,
empathy and respect for individuals and minorities.
Without this kind of support, the mixed economic system can be transformed into a
coherent government system that can be manipulated by the various interests that have
dominated.
However, regardless of the economic system implemented in the country,
entrepreneurs must still be able to struggle in overcoming various problems, both internal and
external issues, such as financial and corporate accounting issues.

BIBLIOGRAPHY
By ibnuismail / September 22nd, 2020 / Categories:Ekonomi & keuangan / Tags: accurate,
accrate online, ekonomi, ekonomi campuran, jenis ekonomi, mengenal ekonomi campuran,
pengertian ekonomi campuran
https://accurate.id/ekonomi-keuangan/sistem-ekonomi-campuran-pengertian-kelebihan-dan-
kekurangannya/