ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC SYSTEMS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Economic system based on supply and demand, instead of government regulation
A
Market
B
Traditional
C
Command
D
Mixed
Explanation: 

Detailed explanation-1: -The free market is an economic system based on supply and demand with little or no government control. It is a summary description of all voluntary exchanges that take place in a given economic environment.

Detailed explanation-2: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society.

Detailed explanation-3: -Each economy functions based on a unique set of conditions and assumptions. Economic systems can be categorized into four main types: traditional economies, command economies, mixed economies, and market economies.

Detailed explanation-4: -In market economy, the economy is a free market economy with no interference from the Government. The prices of the commodities in this economy are fixed on the basis of free forces of demand and supply in the market.

Detailed explanation-5: -If production, allocation, and ownership are 100% controlled by government, then we call such an economic system as Socialism.

There is 1 question to complete.