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Question
India is called a mixed economy because of co-existence of ______.
Options
Public and private sectors.
Rural and urban sectors.
Both the public and private sectors and the rural and urban sectors.
Neither the public and private sectors nor the rural and urban sectors.
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Solution
India is called a mixed economy because of co-existence of public and private sectors.
Explanation:
India is called a mixed economy because it has the co-existence of public and private sectors. Some industries, especially strategic, basic, and heavy ones, are run by the public sector, while the private sector manages many others. The government regulates the private sector through industrial, monetary, and fiscal policies. Thus, both planning and market mechanisms coexist in India, combining features of capitalism and socialism.
