ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The driving principle behind laissez-faire, a French term that translates to “leave alone” (literally, “let you do"), is that the less the government is involved in the economy, the better off business will be, and by extension, society as a whole.

Detailed explanation-2: -An economic system is a set of institutions and a coordinating mechanism to respond to the economizing problem for an economy. a. The command system (also called socialism or communism) is based primarily on extensive public ownership of resources and the use of central planning for most economic decision making.

Detailed explanation-3: -All economies must answer basic questions like what goods and services to produce, how to produce these goods and services, and how to distribute the goods and services – using their scarce resources.

Detailed explanation-4: -A mixed economy is variously defined as an economic system blending elements of a market economy with elements of a planned economy, markets with state interventionism, or private enterprise with public enterprise.