Question

In a mixed economy, ...........

• A. All economic decisions are taken by the central authority.
• B. All economic decisions are taken by the private entrepreneurs.
• C. Economic decisions are partly taken by the state and partly by the private entrepreneurs.
• D. None of the above

Answer 1

Answer: (C)

Economic decisions are partly taken by the state and partly by the private entrepreneurs.

A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims. In simple word when Economic decisions are partly taken by the state and partly by the private entrepreneurs it is mixed economy.