ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An economic system is a mechanism with the help of which the government plans and allocates accessible services, resources, and commodities across the country. Economic systems manage elements of production, combining wealth, labour, physical resources, and business people.

Detailed explanation-2: -The correct answer is option B: Economic models are based on facts and not assumptions about the relationship between variables. See full answer below.

Detailed explanation-3: -False, microeconomics deals with prices and production in the market whereas the study of aggregates is the matter of macroeconomics. 1) Macro-Economics is the study of aggregates. 2) Macro-Economics is also known as income and employment theory.

Detailed explanation-4: -Traditional systems focus on the basics of goods, services, and work, and they are influenced by traditions and beliefs. A centralized authority influences command systems, while a market system is under the control of forces of demand and supply. Lastly, mixed economies are a combination of command and market systems.