Question

What type of economy is in India?

• A. Mixed economy
• B. Planned economy
• C. Market economy
• D. None of these

Hint:

A mixed economy combines both government regulation and private sector participation in the market.

Answer 1

The Correct Option is A

Step 1: Understanding the types of economies.
India follows a mixed economy, which means that both the government and the private sector play important roles in economic decision-making. It combines elements of a market economy and a planned economy, where the government regulates certain industries while the private sector is responsible for others.

Step 2: Analyzing the options.
(A) Mixed economy: Correct. India has a mixed economy, with both public and private sectors contributing to the economy's functioning.
(B) Planned economy: Incorrect. While India has some planned elements, it is not purely a planned economy. The government does not control all means of production.
(C) Market economy: Incorrect. A market economy is driven purely by the forces of demand and supply, with minimal government intervention, which is not the case in India.
(D) None of these: Incorrect, as the correct answer is (A) Mixed economy.

Step 3: Conclusion.
India's economy is a Mixed economy where both private and public sectors coexist.