Given below are two statements:
Statement I: In reality, all economies are mixed economies.
Statement II: Mixed economies differ from one another in the extent of the role of the government in deciding the course of economic activities.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Both Statement I and Statement II are true.
Statement I: In reality, all economies are mixed economies. — True. In every economy some important decisions are taken by the government, while most activities go through the market.
Statement II: Mixed economies differ from one another in the extent of the role of the government in deciding the course of economic activities. — True. The government’s role is minimal in some countries and large in others.
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. In the United States of America, the role of the government is minimal. The closest example of a centrally planned economy is the China for the major part of the twentieth century. In India, since Independence, the government has played a major role in planning economic activities. …” |