mixed economy

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mixed economy An economy which combines elements of the market economy with elements of a command economy; that is, combines characteristics of capitalism and socialism. In a mixed economy, some but not all of the activities of production, distribution, and exchange are organized by the state, and the state generally plays a larger role in setting policy, rules, and objectives, and in controlling labour, than would occur in a purely market economy.

The term is sometimes used more loosely to refer to an economy which includes any elements other than a pure market economy, for example pockets of subsistence farming in particular areas of the country.

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economy, mixed See MIXED ECONOMY.