GENERAL KNOWLEDGE

Detailed explanation-1: -India has a mixed economy; therefore, public, as well as private entities, co-exist. This is as a result of adapting the industrial policies in 1948 and later in 1956. However, they do not operate freely; instead, they are controlled by different mechanisms, i.e. policies implemented by Governments.

Detailed explanation-2: -b) After independence, India adopted the system of mixed economy where both the private and public sectors co-exist and contribute to the development of the nation.

Detailed explanation-3: -Best Allocation of Resources: The resources are utilized in the best possible manner in the Mixed Economic System. The Central Government makes economic planning for optimum use of the resources. Thus shortage is avoided; productive efficiency increases and cyclical fluctuations are eliminated.

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.