Answer to Question #161431 in Economics of Enterprise for Kimberly Teng

Question

what is mixed economy?

Answer 1

A mixed economy is an economy found in free markets that support the aspects of capitalism and socialism. Mixed economies are regulated by governments but they are mainly privately owned by individuals. There are three characteristics of a mixed economy. First, they are privately owned. Second, they are found in free markets .Finally, the law of demand and supply are allowed to determine the price of commodities. In a mixed economy, entrepreneurs have the freedom to pursue their interests within the markets.