Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Most countries in the world follow which of the following economic system today?

Options:

Capitalism

Socialism

Mixed Economy

Communism

Correct Answer:

Mixed Economy

Explanation:

Most economies are mixed economies, i.e. the government and the market together answer the three questions of what to produce, how to produce and how to distribute what is produced. In a mixed economy, the market will provide whatever goods and services it can produce well, and the government will provide essential goods and services which the market fails to do.