GENERAL KNOWLEDGE

Detailed explanation-1: -A mixed economy is an economy that incorporates elements of both free market transactions and government control. While a mixed economy generally allows private property and prices, it also will typically have sectors or industries controlled or subsidized to a greater or lesser degree by a central authority.

Detailed explanation-2: -However, in a mixed economy, the government is responsible for making and implementing various regulatory measures. The regulatory measures used in a mixed economy restrict the working of the free market mechanism. This is because of the reason that these measures limit the functioning of market forces in an economy.

Detailed explanation-3: -A mixed economy is defined by the co-existence of a public and private sector. The specific mix between public and private can vary significantly from one mixed economy to another, however. Based on their respective natures, the private sector is subservient to the public sector.