Question

Identify the characteristic features of mixed economy among the following:
A. It is a combination of resources owned and controlled by the private as well as public sector.
B. There is no or minimal government intervention in economic activities.
C. The degree of public and private sector involvement is determined by the government.
D. It relies on the government only to allocate resources. Choose the correct answer from the options given below:

• A. A and B Only
• B. A and C Only
• C. B and D Only
• D. B and C Only

Hint:

Mixed economy combines private enterprise with government control.

Answer 1

The Correct Option is B

Concept:
A mixed economy combines features of both capitalist and socialist economic systems.

Step 1:
A mixed economy includes both private sector and public sector participation. \[ A \text{ is correct} \]

Step 2:
Mixed economies involve government regulation and intervention; therefore minimal government intervention is incorrect. \[ B \text{ is incorrect} \]

Step 3:
The government decides the extent of public and private participation in different sectors. \[ C \text{ is correct} \]

Step 4:
Resource allocation is done by both market forces and government, not only by government. \[ D \text{ is incorrect} \]

Step 5:
Thus, the correct combination is: \[ A \text{ and } C \text{ Only} \] \[ \boxed{\text{(2) A and C Only}} \]