Simply in such type of economy there is the presence of private economic freedom with centralized planning with a common goal of avoiding the problems associated with both capitalism as well as socialism.
In this system the freedom in the economic activities are influenced by the Government's regulation and licensing policies.
Existence Of A Mixed Economy
It is too difficult to define a country's economy as capitalist, socialist, or mixed. But as the experiences tell the role of the Government has increased very fast after the worldwide depression.
The was one of the best examples of the Capitalist economy is considered as a mixed type today.
Mixed Economy An Economic Mixture
In a mixed type economy, both the private ownership as well as the state takes part in the means of production, distribution and other types of economic activities.
The mixed economy allows private participation in the field of production in an environment of competition with an objective of attaining profit. On the contrary following to the socialism features it includes public ownership in production for maximizing social welfare.