Question

Economic planning by which both the state and the private sector played a role in development was called a _________ model.

• A. mixed Economy
• B. defined Economy
• C. complex Economy
• D. none of these

Answer 1

The correct option is A mixed Economy

Under mixed economy, both private and public sector function together in cooperative manner to attain the social objectives under a common economic plan. Private sector industries are owned by private individuals for profit motive. For example, private sector industries have welcomed the foreign direct investment which led to ample growth and development in the country.

Public sector industries are owned by the government for social motive. For ex, petroleum is still in the hands of public sector undertaking. Thus, both play role for the overall development of the country.