Practicing Success

Target Exam

CUET

Subject

Sociology

Chapter

Indian Society: Market as a social Institution

Question:
Capitalist economy works best when ________________
Options:
Market is not limited
When individual buyers and sellers make rational decisions
When individual buyers and sellers make irrational decisions
When buyers and sellers are indifferent to one another
Correct Answer:
When individual buyers and sellers make rational decisions
Explanation:
According to Adam Smith rational decision of the individual buyers and sellers helps to serve their self interest which creates more wealth