Which concept refers to a compromise between socialist planning and free enterprise?

The concept that refers to a compromise between socialist planning and free enterprise is the mixed economy. A mixed economy incorporates elements of both socialism and capitalism, allowing for private enterprise while also enabling government regulation and intervention to promote social welfare. This system seeks to balance the efficiency and innovation of free markets with the equity and social justice objectives of socialist policies.

In a mixed economy, individuals and businesses can own private property and operate for profit, but the government may also provide essential services and enforce regulations to ensure fair competition and protect the public interest. This blend aims to capitalize on the strengths of both systems while mitigating their weaknesses.

Understanding this concept is essential for recognizing how different economic systems operate in practice and the implications for both consumers and businesses.