Mixed Economy Most modem industrialized nations have mixed economies. In a mixed economy, both the government and private business enterprises produce and distribute goods and services. The government usually plays a role in supplying defense, roads, education, pensions, and some medical care. In the mixed economy, markets are generally free and competitive. Capitalism and the mixed economy The American brand of economic system, called capitalism, has created a mixed economy. Capitalism is characterized by private ownership of capital and by competition among businesses seeking a profit. Consumers play much more of a role under capitalism than they do in a planned economy. They have freedom of choice in purchasing goods and services, in selecting an occupation or a school, and in deciding how to use -money that is earned. They are free to consume what they want and need. Their choices greatly influence decisions about production and use of resources. (未完待续)