Question

Which economy has a co-existence of private and public sectors?

• A. Capitalist
• B. Socialist
• C. Mixed
• D. None of these

Hint:

Remember: Mixed Economy = Private Sector (Capitalism) + Public Sector (Socialism).

Answer 1

The Correct Option is C

A Capitalist economy is characterized by private ownership and control of the means of production.
A Socialist economy is characterized by state or public ownership and control.
A Mixed economy, as the name suggests, combines elements of both. It features a private sector driven by market forces and a public sector managed by the government, which co-exist.
Most modern economies, including India's, are mixed economies.