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Consider the following statements regarding the ‘distribution system’:
1. In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.
2. In the market model of the distribution system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the population
Which of these statements is/are incorrect?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)Neither 1 nor 2
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Consider the following statements regarding the ‘distribution sy...
In the arena of the distribution network, we have three historically existing models-state, market, and state-market mix.
In the first type of distribution system, the state (i.e., the government) takes the sole responsibility of supplying goods and services required by the population with no payments being done by the consumer- the former Soviet Union and Communist China being the best examples.
In the second category comes the market model of distribution which functions based on the price mechanism. In this system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the population. This was the distribution system of the capitalist economies of the whole of Euro-America.
The third and the most prevalent mode of distribution, the state market mix, developed out of the experiences of the former two systems.
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Most Upvoted Answer
Consider the following statements regarding the ‘distribution sy...
Distribution System: State Model and Market Model
The distribution system refers to the process of delivering goods and services to the population. There are two models of the distribution system: the state model and the market model. Let's examine the statements given in the question and determine which one(s) are incorrect.
State Model of the Distribution System
In the state model of the distribution system, the government takes the sole responsibility of supplying goods and services to the population. This system is often associated with socialist and communist countries where the government owns and controls the means of production and distribution. The state model is characterized by the following:
- Centralized planning and control of production and distribution
- Fixed prices for goods and services
- Limited consumer choice and competition
- Emphasis on social welfare and equity
Statement 1: In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.
This statement is correct. In the state model, the government is responsible for providing essential goods and services such as healthcare, education, housing, and food to the population. The government may also regulate the production and distribution of non-essential goods to ensure that they are affordable and accessible to all.
Market Model of the Distribution System
In the market model of the distribution system, goods and services are made available in the market, and their prices are determined based on their demand and supply. The market model is characterized by the following:
- Decentralized production and distribution
- Price determination based on market forces
- Consumer choice and competition
- Emphasis on efficiency and profitability
Statement 2: In the market model of the distribution system, goods and services are made available in the market, and based on their demand and supply, their prices are determined in the open market, and finally, they get distributed to the population.
This statement is correct. In the market model, producers and suppliers compete to provide goods and services to consumers at the lowest possible prices. The market forces of supply and demand determine the prices of goods and services, and consumers have the freedom to choose from a variety of products. The distribution of goods and services is based on consumer demand and the ability to pay.
Conclusion
Both statements given in the question are correct. Therefore, the correct answer is option D, "Neither 1 nor 2." The state model and the market model are two different models of the distribution system, each with its advantages and disadvantages. The choice between these models depends on the social, economic, and political context of each country.
The distribution system refers to the process of delivering goods and services to the population. There are two models of the distribution system: the state model and the market model. Let's examine the statements given in the question and determine which one(s) are incorrect.
State Model of the Distribution System
In the state model of the distribution system, the government takes the sole responsibility of supplying goods and services to the population. This system is often associated with socialist and communist countries where the government owns and controls the means of production and distribution. The state model is characterized by the following:
- Centralized planning and control of production and distribution
- Fixed prices for goods and services
- Limited consumer choice and competition
- Emphasis on social welfare and equity
Statement 1: In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.
This statement is correct. In the state model, the government is responsible for providing essential goods and services such as healthcare, education, housing, and food to the population. The government may also regulate the production and distribution of non-essential goods to ensure that they are affordable and accessible to all.
Market Model of the Distribution System
In the market model of the distribution system, goods and services are made available in the market, and their prices are determined based on their demand and supply. The market model is characterized by the following:
- Decentralized production and distribution
- Price determination based on market forces
- Consumer choice and competition
- Emphasis on efficiency and profitability
Statement 2: In the market model of the distribution system, goods and services are made available in the market, and based on their demand and supply, their prices are determined in the open market, and finally, they get distributed to the population.
This statement is correct. In the market model, producers and suppliers compete to provide goods and services to consumers at the lowest possible prices. The market forces of supply and demand determine the prices of goods and services, and consumers have the freedom to choose from a variety of products. The distribution of goods and services is based on consumer demand and the ability to pay.
Conclusion
Both statements given in the question are correct. Therefore, the correct answer is option D, "Neither 1 nor 2." The state model and the market model are two different models of the distribution system, each with its advantages and disadvantages. The choice between these models depends on the social, economic, and political context of each country.
Community Answer
Consider the following statements regarding the ‘distribution sy...
Neither 1or2
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Consider the following statements regarding the ‘distribution system’:1. In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.2. In the market model of the distribution system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the populationWhich of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?
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Consider the following statements regarding the ‘distribution system’:1. In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.2. In the market model of the distribution system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the populationWhich of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct 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 regarding the ‘distribution system’:1. In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.2. In the market model of the distribution system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the populationWhich of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct 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 regarding the ‘distribution system’:1. In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.2. In the market model of the distribution system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the populationWhich of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
Consider the following statements regarding the ‘distribution system’:1. In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.2. In the market model of the distribution system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the populationWhich of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct 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 regarding the ‘distribution system’:1. In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.2. In the market model of the distribution system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the populationWhich of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct 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 regarding the ‘distribution system’:1. In the state model of the distribution system, the state takes the sole responsibility of supplying goods and services.2. In the market model of the distribution system, goods and services are made available in the market and based on their demand and supply, their prices are determined in the open market and finally, they get distributed to the populationWhich of these statements is/are incorrect?a)1 Onlyb)2 Onlyc)Both 1 and 2d)Neither 1 nor 2Correct answer is option 'D'. Can you explain this answer?.
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