An economy in which both the public and private sectors contribute to economic growth is a__________?

Step 1: Analyze the question The question asks for the type of economy where both the public sector (government) and the private sector (individuals and firms) contribute to economic growth.

Step 2: Explain the concepts

• Socialist economy: The government owns and controls most resources and means of production. The private sector plays little or no role.
• Feudal economy: An old system in which land is owned by lords and worked by peasants in exchange for protection. It is not a modern system of public and private participation.
• Capitalist economy: Resources and production are mostly privately owned, and market forces (demand and supply) drive decisions. Government involvement is minimal.
• Mixed economy: Both the government and private individuals own resources and take part in production and distribution.

Step 3: Apply to the question The key phrase is "both the public and private sectors." That is the defining feature of a mixed economy. Nigeria is a good example. The government runs institutions such as the NNPC, power and water authorities, and public universities. Private businesses operate in banking, telecoms, manufacturing, retail and more.

Step 4: Answer The correct option is C. mixed economy.

Tip: Look for the keyword "both." Mixed = a mix of public and private. Likewise, "government only" points to socialism, and "private only" points to capitalism.