UPSC Exam  >  UPSC Questions  >   Consider the following statements.1. In a ca... Start Learning for Free
Consider the following statements.
1. In a capitalist society the goods produced are distributed among people on the basis of what people need
2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance
3. In a mixed economy, the market will provide whatever goods and services it can produce well
Which of the statements is/are correct?
  • a)
    1 Only
  • b)
    2 Only
  • c)
    3 Only
  • d)
    None of them
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements.1. In a capitalist society the good...
  • In a capitalist society the goods produced are distributed among people not on the basis of what people need but on the basis of Purchasing Power—the ability to buy goods and services. That is, one has to have the money in the pocket to buy it.
  • Low cost housing for the poor is much needed but will not count as demand in the market sense because the poor do not have the purchasing power to back the demand. As a result this commodity will not be produced and supplied as per market forces.
  • In a socialist society the government decides what goods are to be produced in accordance with the needs of society. It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are not given much importance.
  • Most economies are mixed economies, i.e. the government and the market together answer the three questions of what to produce, how to produce and how to distribute what is produced. In a mixed economy, the market will provide whatever goods and services it can produce well, and the government will provide essential goods and services which the market fails to do.
View all questions of this test
Most Upvoted Answer
Consider the following statements.1. In a capitalist society the good...
Explanation:

The given statements are incorrect in their understanding of capitalist, socialist, and mixed economies.

Capitalist Society:

- In a capitalist society, goods are not distributed based on need but on the ability to pay for them. Those with more money can buy more goods and services, while those with less money have limited access.
- The market determines what goods and services are produced, not the needs of people.

Socialist Society:

- In a socialist society, individual desires and needs are still important. The government's role is to ensure that everyone has access to these goods and services, regardless of their ability to pay.
- The government does not control all aspects of production, but rather works to ensure that the needs of the people are met.

Mixed Economy:

- In a mixed economy, both the market and the government play a role in determining what goods and services are produced and how they are distributed.
- The government may regulate certain industries or provide subsidies to support certain types of production.
- The market determines what goods and services are in demand and therefore what is produced.

In summary, none of the given statements are correct. Capitalist societies distribute goods based on ability to pay, socialist societies prioritize individual needs and desires with government support, and mixed economies involve both the market and government in determining production and distribution.
Explore Courses for UPSC exam

Similar UPSC Doubts

Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer?
Question Description
Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC. Download more important topics, notes, lectures and mock test series for UPSC Exam by signing up for free.
Here you can find the meaning of Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Consider the following statements.1. In a capitalist society the goods produced are distributed among people on the basis of what people need2. In a socialist society It is assumed that the government knows what is good for the people of the country and so the desires of individual consumers are given much importance3. In a mixed economy, the market will provide whatever goods and services it can produce wellWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) 3 Onlyd) None of themCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UPSC tests.
Explore Courses for UPSC exam
Signup to solve all Doubts
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev