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 |
Answer & explanation
Correct answer: option 2
The correct answer is Option 3: 1-B, 2-D, 3-A, 4-C
| 1. | Socialism | B. The role of government is high | |
| 2. | Capitalism | D. The role of government is negligible | |
| 3. | Mixed economic system | A.The role of government is moderate | |
| 4. | Economic problem | C.What, how, for whom to produce | |
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.