What happens in Mixed Economy?
Mixed Economy is the middle ground between Market Economy and Planned Economy. Most of the decision making is left in the hands of the businessmen who allocate their resources on the basis of price mechanism, but the government may interfere when it realizes the general public is in jeopardy. Mixed Economy aims to combine the advantages of Market and Planned Economy. Consumer products are produced with the main aim of earning profit whereas the public goods are produced by the government.