BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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All economic decisions are taken by the central authority.
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All economic decisions are taken by private entrepreneurs.
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Economic decisions are partly taken by the state and partly by the private entrepreneurs.
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None of the above.
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Detailed explanation-1: -Economic decisions are partly taken by the state and partly by the private entrepreneurs in a mixed economy. in a mixed economy there is a coexistence of public and private sector in order to ensure a smooth functioning of the economy. India is a type of mixed economy.
Detailed explanation-2: -In a mixed economy both market forces and government decisions determine which goods and services are produced and how they are distributed.
Detailed explanation-3: -In a mixed economic system, the private sector and public sector co-exist. There is a certain level of economic freedom so that the private sector can decide the use of capital and seek profits. It simultaneously allows the government to intervene in some economic activities and industries.
Detailed explanation-4: -A mixed economic system is a system that combines aspects of both capitalism and socialism. A mixed economic system protects private property and allows a level of economic freedom in the use of capital, but also allows for governments to interfere in economic activities in order to achieve social aims.
Detailed explanation-5: -A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods.