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Mixed economies blend elements of capitalism and socialism to create a balanced system. This system allows for private ownership and market-based decision-making while also providing government intervention to address market failures and promote social welfare. Mixed economies offer advantages such as economic stability, efficiency, and innovation, but also have disadvantages including income inequality and potential for government overreach. Understanding the definition, characteristics, and exam of a mixed economy is crucial for navigating the complex landscape of modern finance and economics.

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