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Question
______ is an economic system which has elements of both capitalism and socialism.
Options
Unplanned economy
Developed economy
Underdeveloped economy
Mixed economy
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Solution
Mixed economy is an economic system which has elements of both capitalism and socialism.
Explanation:
A mixed economy is an economic system which has elements of both capitalism and socialism.
It combines the private sector and the public sector, meaning both coexist and participate in economic decision-making.
In a mixed economy, certain resources and industries may be owned and managed by the government (socialism element), while others remain in private hands and operate on market principles (capitalism element).
This system allows for individual freedom and choice while ensuring social welfare and planned development.
Thus, it captures the advantages of both capitalism and socialism, making it a balanced and flexible economic system.
