Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:
The "Means of production" are under the control of the "State" in which type of economy?
Options:

Capitalist Economy

Mixed Economy

Socialist Economy 

Market Economy

Correct Answer:

Socialist Economy 

Explanation:

In socialist economy,  the government or the state decides the means of production and how goods are to be distributed in the country. It works for the betterment of the society and welfare of the nation. Thus, irrespective of what purchasing power people have, essential goods are provided to them. For example: A socialist nation provides free healthcare facilities to its people.