Final answer:
A mixed economy is one that integrates elements from both market and command economies, where both private sector decisions and government policies have a role in economic outcomes.
Step-by-step explanation:
A mixed economy is an economic system that incorporates aspects of both free-market and command economies. In this system, decisions regarding production, investment, and distribution are guided by a blend of market forces, such as the decisions of individuals and firms, as well as government interventions. Countries such as the United States, which lean more towards a market-oriented system, and nations in Europe and Latin America feature different degrees of government involvement, reflecting the mixed economic paradigm.
Mixed economies seek to balance the efficiency and freedom of the market with the broader social goals that governments may prioritize, such as equity and economic stability. They are the most common form of economic systems in the world today, combining the private sector's innovative capacity and the public sector's focus on welfare.