When some allocation of resources is made by the market and some is made by the government an economy is said to be a be a mixed economy.
A system that has elements of both capitalism and socialism is called a mixed economy.
A mixed economy protects private property and permits some economic freedom in the use of capital, but it also permits government intervention in the economy to further social objectives.
Neoclassical theory states that mixed economies are less effective than pure free markets, but proponents of government interventions contend that the fundamental requirements for efficiency in free markets, such as equal information and rational market participants, cannot be met in actual practice.
A mixed economy is one that is structured with a combination of free-market and socialist components and that falls somewhere on the spectrum between pure capitalism and complete socialism.
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