An economic system that combines private enterprise with state ownership and control of some sectors is known as which one of the following?

Introduction / Context:
Different economic systems are classified based on who owns and controls the means of production and how decisions about resource allocation are made. The main categories include market economies, centrally planned economies and mixed economies. This question asks you to identify the system in which both private sector and state sector coexist and participate in production.

Given Data / Assumptions:
- The economic system in the question combines private enterprise and state enterprise.
- There is some degree of government intervention along with market mechanisms.
- Four options are provided: market economy, centrally planned economy, private economy and mixed economy.

Concept / Approach:
A pure market economy is one where resource allocation is determined mainly by market forces and most assets are privately owned. A centrally planned or command economy is one where the state owns most resources and central authorities make production and distribution decisions. A mixed economy displays features of both systems: private ownership and enterprise operate alongside public sector enterprises, and the government intervenes to correct market failures or achieve social objectives. Therefore, the economic system described in the question is a mixed economy.

Step-by-Step Solution:
Step 1: Examine option A, market economy. While market economies emphasise private enterprise, they do not necessarily involve significant state ownership of productive assets. This option does not fully match the description.Step 2: Examine option B, centrally planned economy. In such a system, the state typically owns most or all means of production and central planning replaces market decisions, which is the opposite of combining private and state sectors.Step 3: Examine option C, private economy. This is not a standard textbook term and suggests dominance of private ownership without highlighting the role of the state as owner.Step 4: Examine option D, mixed economy. A mixed economy explicitly indicates the coexistence of private sector and public sector, with both market forces and government planning influencing decisions, which perfectly corresponds to the description given.

Verification / Alternative check:
You can verify by thinking of examples. India, especially in the decades after independence, was often described as a mixed economy with both public sector undertakings and private firms playing major roles. Many European welfare states also mix market allocation with strong government involvement. These examples show that combining private and state enterprise is characteristic of a mixed economy.

Why Other Options Are Wrong:
Market economy is wrong as an answer because it suggests mainly private enterprise and minimal state ownership. Centrally planned economy is wrong because it focuses on comprehensive state control rather than coexistence. Private economy is not a precise technical term and does not capture the dual structure described in the question.

Common Pitfalls:
Students sometimes confuse mixed economy with centrally planned economy because both involve some government role. The key difference is that in a mixed economy, markets and private ownership remain important, while in a centrally planned economy, central authority dominates. Remembering that the word mixed suggests a mixture of both private and public elements will help avoid this confusion.

Final Answer:
The economic system combining private and state enterprise is called a Mixed economy.