What is a mixed market economy?

World Economic Systems Questions



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What is a mixed market economy?

A mixed market economy is an economic system that combines elements of both a market economy and a planned economy. In this system, the government and private individuals or businesses coexist and play a role in the allocation of resources and the production of goods and services. While the market forces of supply and demand largely determine prices and production decisions, the government also intervenes through regulations, subsidies, and public services to ensure fairness, stability, and social welfare.