What economic system combines elements of private enterprise and planned economies?

The mixed market economy is a system that incorporates aspects of both private enterprise and planned economies. In such a system, the private sector operates alongside government intervention to regulate and guide the economy. This dual approach allows for the benefits of free-market competition, which can lead to innovation and efficiency, while also enabling the government to manage public goods and address social inequities.

A mixed market economy recognizes that while markets are essential for facilitating trade and entrepreneurship, there are also areas where government involvement is crucial to ensure fair practices, provide essential services, and stabilize the economy during downturns. This blend allows for a balance between individual freedom in economic pursuits and social welfare considerations.

In contrast, a command economy relies entirely on centralized control by the government with little to no input from private enterprise, while a traditional economy is based on customs and historical practices, often lacking modern economic structures. A market economy primarily depends on supply and demand to determine prices and production without significant government intervention. The mixed market economy successfully integrates these differing approaches to promote a more adaptable and resilient economic framework.