A mixed economic system protects some private property and allows a level of economic freedom in the use of capital, but also allows for governments to intervene in economic activities in order to achieve social aims and for the public good.

Main Characteristics of Capitalist Economies

• Two-Class System.
• Private Ownership.
• Profit Motive.
• Minimal Government Intervention.
• Competition.
• The Bottom Line.

There are four types of economic systems; traditional, command, market, and mixed economies. A traditional economic system focuses exclusively on goods and services that are directly related to its beliefs and traditions. A command economic system is characterized by a dominant centralized power.

how a society determines what to produce, how to produce, and for whom to distribute goods and services. The primary goal of an economic system is to provide people with a minimum standard of living, or quality of life.

And , the policies are: (1) Industrial Policy, (2) Trade Policy, (3) Monetary Policy, (4) Fiscal Policy, (5) Indian Agricultural Policy, (6) National Agricultural Policy, (7) Industrial Policies, (8) International Trade Policy, (9) Exchange Rate Management Policy, and (10) EXIM Policy.

The first is the traditional economy, which is the oldest economic system and can be found in parts of Asia, Africa, and South America. Traditional economies organize their economic affairs the way they have always done (i.e., tradition).

Although economists identify just two major economic systems, market and command, in reality, most economies fall somewhere in between the two. Some economies lean more toward a market system while some lean more toward a command system.

The earliest economies were based on trade, which was often a simple exchange in which people traded one item for another. Our earliest forms of writing (such as Sumerian clay tablets) were developed to record transactions, payments, and debts between merchants.

Four pure types of modern economic system are theoretically possi- ble, namely, market capitalism, market socialism, command socialism, and command capitalism. Each is based on certain values. Actu,al modern economies are variants of pure types of modern economic system: they are mixed economic systems.

Paul Samuelson

In a capitalist economy, the role of government is very limited. The main functions of government, as given by Adam Smith, are to maintain law and order in a country, make national defense stronger, and regulate money supply. According to Smith, the market system administers various economic functions.