A mixed economy is a system that blends free market capitalism with government regulation. Private businesses operate for profit, but the government steps in to regulate industries, provide public services, and correct market failures. Most modern economies are mixed.
The US, UK, India, France, and Japan are all mixed economies. Private companies run most businesses, but governments provide healthcare, education, defense, infrastructure, and social safety nets. They also regulate monopolies, enforce labor laws, and manage monetary policy.
The balance between market freedom and government control varies. The US leans more toward the market; Scandinavian countries (Sweden, Denmark, Norway) lean more toward government involvement with generous welfare systems. India started as a heavily government-controlled economy after independence and has gradually moved toward market liberalization since 1991.