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A mixed economy refers to an economic system where
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- The economy functions with foreign collaboration
- Only the private sector operates under government control
- Both the government and the private sectors operate sectors operate simultaneously
- No foreign investment is allowed
- The economy functions with foreign collaboration
Correct Option: C
Mixed economy is an economic system in which both the state and private sector direct the economy, reflecting characteristics of both market economies and planned economies. The basic idea of the mixed economy is that the means of production are mainly under private ownership; that markets remain the dominant form of economic coordination; and that the government wields indirect influence over the economy through fiscal and monetary policies.
