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Critically examine why pure economic systems rarely exist in reality. Assess the limitations of such systems and justify why a mixed economy is often considered a more practical and effective approach in real-world contexts.
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- A pure planned economy restricts competition, so quality and innovation suffer.
- A pure market economy leaves out public goods and infrastructure, which is why governments step in even there.
- Even market economies like the USA and Singapore have significant government involvement.
- A mixed economy keeps the good parts of both - private enterprise and competition, with government rules and welfare programmes.
- That is why almost all economies today are mixed.
