An economy in which decision of what to produce is taken partly by private individuals and state is referred to as Economy.

Step 1: Analyze the question The question asks for the type of economy where decisions on what to produce are shared between private individuals and the state (government).

Step 2: Explain the concept Economic systems are classified by who makes production decisions:

• Capitalist (market) economy: Decisions are made mainly by private individuals and firms, guided by the price mechanism and the profit motive. Government involvement is minimal.
• Socialist economy: The state controls most of the means of production, with limited private ownership.
• Communist economy: The state owns and controls all the means of production. There is no private ownership.
• Mixed economy: Private individuals and the government both take part in deciding what to produce. Private businesses and public enterprises operate side by side.

Step 3: Apply to the question The key phrase is "partly by private individuals and state." This points to a system with joint participation, which is exactly the definition of a mixed economy.

• A: Communist is wrong because the state decides everything.
• C: Socialist is wrong because the state dominates.
• D: Capitalist is wrong because private individuals dominate.
• B: Mixed is correct because decisions are shared.

Step 4: Real-life context Nigeria is a good example of a mixed economy. The government runs institutions such as the NNPC and public universities, while private individuals run businesses such as Dangote Group, banks, and telecom companies.

Answer: B. Mixed

Exam tip: Look for the clue words. "Partly... and..." or "both private and government" almost always points to a mixed economy. "Only the state" suggests communist or socialist, and "free market" or "private ownership" suggests capitalist.