What is a key feature of a mixed economy?

A mixed economy is characterized by a combination of private and public ownership of resources and means of production. This means that both individuals and the government have a role in economic decision-making. In such an economy, the private sector operates businesses and markets while the public sector provides services and regulates activities to promote social welfare. This blend allows for the benefits of free-market competition, such as efficiency and innovation, alongside government interventions aimed at correcting market failures and ensuring equitable distribution of resources.

By integrating elements from both capitalism and socialism, a mixed economy seeks to balance economic growth with social equity. This structure supports public goods and services—like education, healthcare, and infrastructure—while also encouraging private enterprise. The resulting system can adapt to various economic conditions and societal needs.