A major setback in any mixed economy is the absence of profit motive in the public sector, which may reduce incentives for hard work. A mixed economy combines both capitalist and socialist systems, allowing the freedom of choice in the production and consumption of goods and services. However, government intervention is necessary to secure full utilization of resources. In a mixed economy, economic decisions are determined by both market forces and government policies. The public sector is run by the government, and profit motive may not be as strong as in the private sector. This may lead to a lack of incentives for workers in the public sector, which can affect productivity and the overall performance of the economy.