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Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Match the following.

1. Socialism A. The role of government is moderate
2. Capitalism B.  The role of government is high
3. Mixed economic system C. What, how, for whom to produce
4. Economic problem D.  The role of government is negligible

 

Options:

1-C, 2-B, 3-A, 4-D

1-B, 2-D, 3-A, 4-C

1-C, 2-D, 3-B, 4-A

1-B, 2-A, 3-D, 4-C

Correct Answer:

1-B, 2-D, 3-A, 4-C

Explanation:

Majorly there are 3 economic systems: Socialism, Capitalism, and mixed economic system. On the basis of who answers the 3 economic problems i.e. what to produce, how to produce, and for whom to produce, we decide which type of economic system is being followed in a country. 

  • Socialism: The government decides what, how, and for whom to produce in the economy. The role of government is high.
  • Capitalism: The market forces decide what, how, and for whom to produce in the economy. The role of government is negligible.
  • Mixed economic system: It is a blend of both systems. Thus, the role of government is moderate.

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