Practicing Success

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:

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.  Whereas, countries like India and Pakistan follow a mixed economic system where not all the production activities are managed by the central authority. There is a blend of private and public sectors.