An economy in which there is both the private sector and the government is known as a:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → mixed economy
An economy with both the private sector and the government is a mixed economy. India is an example.
NCERT (2026-27): “We introduced the government in chapter one as denoting the state. We stated that apart from the private sector, there is the government which plays a very important role. An economy in which there is both the private sector and the Government is known as a mixed economy. There are many ways in which the government influences economic life. In this chapter, we will limit ourselves to the functions which are carried on through the government budget. …” |