Question

Which of the following is the merit of mixed economy?

• A. Encouragement to private sector
• B. Efficient use of resources
• C. Competition and Efficient production
• D. Lesser economic inequalities
• E. All the above

Answer 1

The correct option is E All the above

Co-existence of public and private sector, individual freedom and economic planning are the features of mixed economy. India is the best example for this type of economy. Merits of mixed economy includes: encouragement of private sector, efficient use of resources, due to private ownership competition exists and production becomes efficient, income inequalities will be reduced.