Question

A mixed economy refers to an economic system where _________.

• A. the economy functions with foreign collaboration
• B. only the private sector operates under government control
• C. both the government and the private sectors operate simultaneously
• D. no foreign investment is allowed

Answer 1

Answer: (C)

both the government and the private sectors operate simultaneously

Mixed economy has properties of both the capitalist and the socialist economy. So the role of government along with the private sector is important. Few key industries are kept under the monopoly power of the Government whereas other industries are open for private sectors. Both these operate simultaneously to achieve growth and development of the economy.