Question

State the derivation of the mixed economy.

• A. Mixed is economy is derived from a combination of a market economy and a capitalist economy.
• B. Mixed is economy is derived from a combination of a planned economy and a socialist economy.
• C. Mixed economy is derived from the combination of a market economy and a planned economy.
• D. None of the above

Answer 1

Answer: (C)

Mixed economy is derived from the combination of a market economy and a planned economy.

Mixed economy has features of both the market and planned economy. By this we mean it has both the public and private sector working, where some key industries are under the public sector and rest are open for private undertakings.