What is a Mixed Economic System?

A mixed economic system is like a teamwork between the government and private businesses to run a country’s economy.

Private Businesses

• These are stores and companies owned by people.

• They sell things like clothes, toys, or food and try to make money.

Government

• The government helps take care of things that are important for everyone, like:

  • Hospitals

  • Schools

  • Roads

  • Police and fire departments

How They Work Together:

• The government lets people start their own businesses.

• But it also makes rules to keep things fair, safe, and helpful for all.

• For example:

  • A company can sell food, but the government checks to make sure it’s clean and safe to eat.

Example:

Imagine you have a lemonade stand:

• You decide the price and sell lemonade (like a business).

• But the government makes sure you’re using clean water and not blocking the sidewalk!

Why It’s Good:

• People can have their own businesses and earn money.

• The government helps protect people and makes sure no one is treated unfairly.