What type of economy combines private and public enterprise?

A mixed economy is characterized by the coexistence of private and public enterprises. In this type of economy, both the market and government play significant roles in regulating and managing economic activity. The private sector operates businesses and industries based on market demand and profit motives, while the public sector manages resources and provides services to ensure equitable access and meet social needs. This blend allows for a balance between the efficiency and innovation typical of capitalist systems and the social welfare goals typically associated with government intervention.

Mixed economies can help address the shortcomings of pure capitalism and socialism by incorporating elements of both. For example, social welfare programs and regulations can help mitigate issues of inequality and provide public goods, while private enterprises can drive competition and economic growth. This combination helps to create a more stable and adaptable economic environment, addressing a wider array of societal needs.