Is an economy in which most economic decisions result from the interaction of buyers and sellers in markets but in which the government plays a significant role in the allocation of resources.

A mixed Economy

Explanation:

A mixed economy is system which combines parts or aspects of socialism and capitalism in that while it allows a certain level of freedom to utilise capital, it also protects governmental interest by allowing a degree of interference by the government in the national economic activities.

The reason for governmental interference which is an aspect of socialism is to allow the government achieve social aims and objectives. The freedom to utilise capital is part of capitalism and this aspect is governed by the interactions of economic factors such as demand and supply and the interaction between buyers and sellers.

It is not purely socialism because government does not have absolute control and it is not pure capitalism because the forces of the market do not have all controls over the allocation of all resources.

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