Which of the following option denotes an economy having a co-existence of private and public sectors?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Mixed economy
In a mixed economy, the government takes some important decisions; this is the public sector. Most activities go through the market, run by private individuals and firms; this is the private sector. So the two sectors co-exist.
Note: NTA uses the terms ‘public sector’ and ‘private sector’. The NCERT book (2026-27) describes a mixed economy as one where some important decisions are taken by the government and the economic activities are by and large conducted through the market.
NCERT (2026-27): “1.3.2 The Market Economy In reality, all economies are mixed economies where some important decisions are taken by the government and the economic activities are by and large conducted through the market. The only difference is in terms of the extent of the role of the government in deciding the course of economic activities. …” |