Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Which of the following are true?

In capitalism:

a) only those consumer goods will be produced that are in demand i.e. those goods which can be sold profitably either in domestic market or international market.

b) government is responsible for production and distribution of goods and services. 

c) profit making is the main motive behind production.

Options:

a), b) and c)

a) and c)

b) and c)

a) and b)

Correct Answer:

a) and c)

Explanation:

The correct answer is Option 2: a) and c)

a) In capitalism, only those consumer goods will be produced that are in demand and can be sold profitably, either in the domestic or international market.

c) Profit-making is indeed the main motive behind production in a capitalist economy.

Statement b) is not true for capitalism, as the government is not responsible for the production and distribution of goods and services in a capitalist system; this is primarily managed by the private sector.