Mixed Economy Involves Both Private and Public Sectors

Steps:

• Recall that a mixed economy combines elements of market and command systems.
• Identify key features: private enterprise alongside government intervention.
• Evaluate choices against this definition to find the best match.
• Select the option showing both sectors in action.

Why C is correct:

• A mixed economy is defined as one where resources are allocated by both private individuals/businesses and government, so services from both sectors exemplify this balance.

Why the others are wrong:

• A: Describes a pure market economy, where government has no role.
• B: Indicates a command economy, fully government-controlled.
• D: Reflects central planning in a command economy, not mixed.

Final answer: C