In a mixed economy, both the state and private sector direct the economy, reflecting characteristics of both market economies (capitalist) and planned economies.

The characteristics of a mixed economy are as follows:

1. Mixed Public-Private Sector: A mixed economy has both a public sector, composed of governmental institutions, and a private sector, made up of private businesses.
2. Mixture of Private Property and Public Ownership: Individuals are allowed to own private property in a mixed economy, while the government manages public property, like parks, libraries, and public schools.
3. Government Intervention: Mixed economies allow the government to intervene in the free market to improve the allocation of resources and promote economic planning, government intervention, and government subsidies in certain fields.