Question

Statement (1): In a mixed economy, means of production are controlled by private sector.

Statement (2): Coexistence of private and public sectors is the main feature of a mixed economy.

Options

• Both statements are true.

• Both statements are false.

• Statement 1 is true, Statement 2 is false.

• Statement 2 is true, Statement 1 is false.

Answer 1

Statement 2 is true, Statement 1 is false.

Explanation:

• Statement (1) “In a mixed economy, means of production are controlled by private sector”. is false because in a mixed economy the means of production are controlled by both the private and public sectors, not just private sector alone.
• Statement (2) “Coexistence of private and public sectors is the main feature of a mixed economy”. is true because a mixed economy combines both sectors working side by side to achieve economic goals.

Thus, the main feature of a mixed economy is the coexistence of private and public sectors, and hence Statement 2 is true while Statement 1 is false.