WBCS.LIVE practice question

A 'mixed economy' is best defined as an economic system where what happens?

Solve this multiple-choice question and check the correct answer with its explanation below.

Answer options

  1. Only the agricultural sector and industrial sector exist.
  2. Private and public economic units operate side by side.
  3. Foreign companies entirely dominate the domestic market.
  4. The government controls all means of production completely.

Correct answer and explanation

Correct answer: Private and public economic units operate side by side.

Explanation: āœ… Correct Answer: B) Private and public economic units operate side by side. šŸ“š Explanation: India adopted a mixed economic model immediately after gaining independence. A mixed economy is a hybrid system that seamlessly combines elements of both capitalism and socialism. In this system, private businesses (free market) and public enterprises (government-owned companies) exist and actively operate side by side to drive national growth.