The closest example of a central planned economy is one among the following in major part of twentieth century. Choose the correct option.

China

As per NTA and the NCERT Book, the correct answer is  Option 2: China

"In reality, all economies are mixed economies where some important decisions are taken by the government and the economic activities are by and large conducted through the market. The only difference is in terms of the extent of the role of the government in deciding the course of economic activities. In the United States of America, the role of the government is minimal. The closest example of a centrally planned economy is the China for the major part of the twentieth century. In India, since Independence, the government has played a major role in planning economic activities. However, the role of the government in the Indian economy has been reduced considerably in the last couple of decades."

Note: This question is taken directly from the NCERT book of "Introduction Chapter ", Micro Economics. The NCERT text is quoted above. However, there seems to be an issue with this question. As per the question, the answer should be Russia and not China. During the majority of the twentieth century, the Soviet Union (which included Russia as its largest constituent republic) operated under a centrally planned economy, where the government controlled and directed economic activities, including production and distribution of goods and services. Therefore, considering the dominance of central planning throughout most of the 20th century, Russia (as the core of the Soviet Union) should be the most fitting answer.