Why would a mixedmarket economy for an imaginary Caribbean i

Why would a mixed-market economy for an imaginary Caribbean island country be best suited? This country\'s government create a central plan that administers aerospace, banking, health insurance, welfare, and retirement programs but it allows for a free-market because the country relies on its tourism and trade from other countries. How would this work? Please explain in detail. Do you think this country would be successful?

Solution

A mixed market economy for an imaginary Caribbean island country is best suited because the economy of the country is such that a mixed plan will be the best option for the country. In sectors such as tourism, trade from other countries , private markets play an important role in attracting tourists and also on the items to be exported from the country. They are mainly handled by private sector and giving this sector the autonomy and a say in the policy making of these areas will promote welfare by increasing the growth of this sector. However, the sectors like aerospace, banking, health, insurance where the role of private sector in less in Caribbean economies should be controlled by government. Thus, mixed market economy is best suited for an imaginery Caribbean island country.