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 socialist economy, goods produced are distributed on the basis of purchasing power of people.

b)In a socialist economy, a poor person is more likely to get a house.

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:

b is true, a is not

Explanation:

Socialist economy works on the principle of equality for all. Thus, a poor person is more likely to get a house because the government will not focus on the purchasing power of that person but his basic need.