Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Read the following statements - Assertion (A) and Reason (R):

Assertion (A): In a capitalist economy, a poor person is more likely to get health care services than in mixed economy.

Reason(R): In mixed economy, government produces and distributes the goods and services that private players fails to provide.

From the given alternatives choose the correct one:

Options:

a) Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).

b) Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).

c) Assertion (A) is true but Reason (R) is false.

d) Assertion (A) is false but Reason (R) is true.

Correct Answer:

d) Assertion (A) is false but Reason (R) is true.

Explanation:

Capitalist economy produces goods which cater to the need of people according to their purchasing power. Whereas, in mixed economy, government produces and distributes the goods and services that private players fails to provide because government's role here is to work for the welfare of people. Thus, Assertion is incorrect.