Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Introduction

Question:

In which of the following options, the central problems of the economy are solved by the central authority?

Options:

Russia                                                                                 

Pakistan

India 

Both 1 and 3

Correct Answer:

Russia                                                                                 

Explanation:

The correct answer is Option 1: Russia                

Russia is a country where there is a centrally planned economy. All the decisions relating to the economic activities are managed by the central authority. Countries like China, Russia etc. follow a centrally planned economy. 

Both Pakistan and India have mixed economies with elements of both market and command systems. They do not have centrally planned economies where the government solves all the central problems.