Explanation:

Correct Option: (c) Explanation:  Both statements are correct Supplementary notes: Market economy  In contrast to a centrally planned economy, in a market economy, all economic activities are organized through the market.  A market, as studied in economics, is an institution6 which organizes the free interaction of individuals pursuing their respective economic activities.  In other words, a market is a set of arrangements where economic agents can freely exchange their endowments or products with each other.  It is important to note that the term ‘market’ as used in economics is quite different from the common sense understanding of a market.  For buying and selling commodities, individuals may or may not meet each other in an actual physical location. Interaction between buyers and sellers can take place in a variety of situations such as a village chowk or a super bazaar in a city, or alternatively, buyers and sellers can interact with each other through telephone or internet and conduct the exchange of commodities.  The arrangements which allow people to buy and sell commodities freely are the de fi ning features of a market.  In reality, all economies are mixed economies where some important decisions are taken by the government and the economic activities are by and large conducted through the market. The only difference is in terms of the extent of the role of the government in deciding the course of economic activities.