Question : The term 'Mixed Economy' refers to an economic system that combines elements of:
Option 1: Capitalism and socialism
Option 2: Socialism and communism
Option 3: Capitalism and feudalism
Option 4: Communism and feudalism
Correct Answer: Capitalism and socialism
Solution : The correct answer is (a) Capitalism and socialism.
A mixed economy is an economic system that combines elements of both capitalism and socialism. In a mixed economy, there is a blend of private ownership and control of resources (characteristic of capitalism) and government intervention and regulation (characteristic of socialism). The government plays a role in regulating industries, providing public goods and services, and implementing social welfare programs. This allows for a balance between market forces and government intervention, aiming to achieve both economic efficiency and social welfare.
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