A mixed economy is a region's economic system that has major elements of both capitalism and socialism. For example, Canada and many economies of Europe are mixed in nature. Mix economies are mostly capitalist ones allowing governmental ownerships where deemed necessary.
A mixed economy is an economy in which both the government and private business enterprises produce and distribute goods and services.
Public/government ownership of business or capital in a country’s economy represents the socialist side of the mix where the scope for privately owned business and capital vouches for the capitalist side.
The eligibility to utilize both of the types remains one of the many upsides as to why many economies in the world go for it.
For example, in the mixed economic system of the United States, education and healthcare institutions are majorly run by the government. Raw milk is forbidden to be sold for human consumption in the states of Alabama and Alaska.
Edible products can be produced by private companies but each and every single one of them must get approval from the government agency called Food and Drug Administration (FDA) before hitting the market.
Use the Term in Sentences:
- Statistically, a mixed economy is less productive than other free economies in general.
- A mixed economy allows both public and privately owned entities around the nation.
- In terms of the mixed economy, the government can control most parts of the nation’s economy but not all.