A mixed economy is an economic system containing both state and private control of RESOURCES and output. Politicaleconomic systems can be characterized along a continuum ranging from pure SOCIALISM to laissez-faire CAPITALISM. In a purely socialistic economy, all resources are controlled collectively, usually by a government. In a LAISSEZ-FAIRE system, almost all resources are privately owned. Every country in the world operates under the conditions of a mixed economy, with differences being the degree of government control of resource decisions. In the United States, the federal government controls a little over 20 percent of the country’s economic activity through taxes (which are then used to purchase goods and SERVICES). In most Scandinavian countries, government spending represents about 40 percent of total national economic activity; the difference is that in Scandinavian countries, health care is a public good and education is almost a public expenditure. In many countries, natural resources, PUBLIC UTILITIES, and transportation systems are developed and controlled by government. Until it was returned to Chinese control, Hong Kong often exemplified the laissez-faire economic system. Cuba and North Korea are examples of highly centralized economies, but in recent years Cuba has encouraged foreign private INVESTMENT, particularly in resort developments.