Which description best defines a mixed economy?

• A. an economic system in which property is publicly owned by the state
• B. an economic system combining private and public enterprise
• C. a system where government plans all production
• D. a system where property is privately owned with no government involvement

Answer: (B)

A mixed economy blends market forces with government involvement. It means private enterprise operates in a mostly market-based system, but the government intervenes to provide public goods, regulate markets, and sometimes own or control certain industries. This combination—private ownership alongside public enterprise and intervention—best describes a mixed economy. The other options point to systems that are either fully state-owned, fully planned by the government, or fully private with little to no government role, which don’t capture the balancing act of a mixed economy.