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 economic system where decisions on what to produce are made by both private individuals and the state.

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

• Capitalist (market) economy: Private individuals and firms decide what to produce. The profit motive and price mechanism guide decisions.
• Communist/socialist (command) economy: The state or government makes the major production decisions and owns the means of production.
• Mixed economy: Both the private sector and the government take part in deciding what to produce. Public and private ownership exist side by side.
• Welfarist: This describes a policy approach focused on social welfare, not a standard basic type of economic system.

Step 3: Apply to the question The key phrase is "partly by private individuals and state". The word "partly" and the two decision-makers (private individuals plus the state) point to a combination of capitalism and state control. This is the definition of a mixed economy.

Nigeria is a good example. Private businesses operate in many sectors, while the government runs or regulates others, such as the refineries, power, and the railways.

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

Tip: Look for signal words. "Partly... and..." or "both private and public" almost always means mixed economy. "Only the state" means command, while "only private individuals" means capitalist or market.