Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

In which type of economy, all the decisions are taken with a view to maximise profits in the economy?

Options:

Mixed economy                                                           

Centrally planned economy

Market economy

None of the above

Correct Answer:

Market economy

Explanation:

In a market economy, the production activities are controlled by the market forces and the decisions are entirely based on maximising the profits. The consumer buys the product according to his choice i.e. he is sovereign.