Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Which of the following are true?

a) In a country where income disparity i.e. gap in income between rich and poor people is large, it is good to have a capitalist economy.

b) In a capitalist economy government takes the responsibility of providing necessary goods and services to people.

Options:

both a and b are true

a is true, b is not

b is true, a is not

both a and b are false

Correct Answer:

both a and b are false

Explanation:

In a capitalist economy government does not play a role in providing necessary goods and services to people thus its not a suitable system for a country with large income disparity. Adopting capitalistic principles will lead to increase in income disparity.