Karthikeyan

Meaning of Mixed Economy

A mixed economy has both:

• Private sector – businesses owned by individuals or groups.

• Public sector – organisations owned and controlled by the government.

Almost every country today uses a mixed economic system.

Private Sector

• Owned by private individuals.

• Decide what to produce, how to produce, and what price to charge.

• Main aim: profit.

• Still has some government rules and controls.

Public Sector

• Owned and controlled by the government.

• Government decides what to produce and how much to charge.

• Many services are free at the point of use (health, education).

• These services are paid for by taxpayers.

• Objectives often differ from private sector.

Industries Usually in the Public Sector

Common examples:

• Health

• Education

• Defence

• Public transport

• Water supply

• Electricity supply