In a mixed economy, the answers to the three fundamental economic questions are determined by both the government and the marketplace. Governments take responsibility for ensuring most people have their basic or essential needs met. The marketplace addresses peoples' wants.

  • This is the most common economic system in the world today.
  • The ownership of productive resources (land, capital) is distributed between governments and private businesses.
  • Decisions about essential goods and services (such as education, healthcare, and heating), commonly are made by governments.
  • Decisions about non-essential goods and services (such as private schools, privatized health care, and luxury accommodations), commonly are made by private  businesses.
Governments (local, provincial or federal) allocate resources of food, clothing, shelter, education, and health care to society. The marketplace allocates resources according to producers' supply and consumers' demand.
The prices of goods and services determine how goods and services are produced for the marketplace. For governments, price is not as important as what will be gained from the goods or services.
Governments address the needs of the many, and allocates resources to all of society (such as universal health care). The marketplace addresses the wants of the few, and allocates resources to specific sectors of society (such as Porsche cars for the wealthy).