Mixed Economy

A mixed economy is an economic system that incorporates aspects of more than one economic system. This usually means an economy that contains both privately-owned and state-owned enterprises or that combines elements of capitalism and socialism, or a mix of market economy and planned economy characteristics. This system overcomes the disadvantages of both the market and planned economic systems.

Features

  • Resources are owned both by the government as well as private individuals. i.e. co-existence of both public sector and private sector.
  • Market forces prevail but are closely monitored by the government.

Advantages