Mixed Economy
Definition
A mixed economy is an economic system that combines elements of both market and command economies. It allows for private ownership of property and individual decision-making while also having some government intervention.
Analogy
Think of a pizza party where everyone brings their own toppings to share. In a mixed economy, individuals have their own choices (toppings) but there are also some rules set by the host (government) to ensure fairness and order.
Related terms
Capitalism: An economic system based on private ownership of property and free markets with minimal government intervention.
Socialism: An economic system characterized by public ownership or control of key industries along with social welfare programs.
Public Goods: Goods or services that are provided by the government for everyone's benefit, such as roads or national defense.
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