Question

The main feature of mixed economy is __________.

• A. Combination of free market economy and centrally planned economy
• B. Production is carried out by private individuals and government
• C. Both (A) and (B)
• D. None of the above

Answer 1

Answer: (C)

Both (A) and (B)

Under mixed economy, both the private and the public sectors function side by side. The government directs economic activity towards certain socially important areas of the economy and the balance is subject to the operation of the price mechanism. The public and private sectors work in a co-operative manner to attain the social objectives under a common economic plan.

Characteristics of Mixed Economy:

• Co-existence of the Private and Public Sectors
  
• Regulation of Private Sector
  
• Planned Economy
  
• Provision of Social Security
  
• Motive of Business Concerns