What is meant by 'mixed economy'?
Show answer & explanation
Correct answer: C
Explanation
The correct answer is option 3 i.e. Both private and public sectors.
A mixed economy is an economic system that combines elements of both market and planned economies. In this system, the private sector and the public (government) sector coexist and collaborate. While private individuals and businesses make most decisions regarding production and pricing based on market demand, the government intervenes to provide essential services, regulate monopolies, and ensure social welfare.
India is a classic example of a mixed economy, where the state manages strategic sectors like defense and railways, while private players drive industries like technology and retail.