Renu went to China and observed that the economic system which they follow is quite different from that of what is being followed in India. In China, the government has a larger control over the production activities than the market forces. According to you, which economic system is being followed in China?

Centrally planned economy                         

The Correct Answer is option 1: Centrally planned economy

China has adopted a centrally planned economy. It is the economy where the control over economic activities is largely given to the government. There are other economic systems like mixed economy and market economy. Examples for a mixed economy is India, whereas, for a market economy, it is USA.