Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Indian Economic Development: Indian Economy:1950-1990

Question:

Which of the following economic systems' determination of supply and demand of the commodities is dependent on market forces? 

Options:

Socialism

Capitalism

Monarchy

Both 2 and 3

Correct Answer:

Capitalism

Explanation:

Under capitalism, the role of private sector is higher and the government doesn't intervene. Thus, the demand and supply of any commodity will be depended on the market forces.