What is a key feature of a mixed economy?

Answer 1

A key feature of a mixed economy is the coexistence of both private and public sectors in the economic framework. In a mixed economy, the government and private individuals or businesses collaborate in the production and distribution of goods and services. This system allows for a balance between free market principles and government intervention, aiming to combine the efficiency of a market-based economy with the social welfare objectives of a planned economy. This approach helps to address issues such as inequality, providing public goods, and regulating monopolies, while still encouraging competition and innovation in the private sector.