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One of the important features of capitalist economy is—
  • a)
    Economic planning
  • b)
    Price mechanism
  • c)
    Economic equalities
  • d)
    Social welfare
Correct answer is option 'B'. Can you explain this answer?
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Most Upvoted Answer
One of the important features of capitalist economy is—a)Economi...
The private ownership of the means of production and the pursuit of profit as the primary motivation for economic activity. This means that individuals and businesses are free to own and use property, invest capital, and trade goods and services in a competitive market. This competition drives innovation, efficiency, and growth, as businesses seek to satisfy consumer demand and maximize profits. Additionally, the freedom to own and accumulate wealth creates incentives for individuals to work hard, take risks, and innovate, leading to increased productivity and economic prosperity. However, critics argue that capitalism can also lead to income inequality, exploitation of workers, and environmental degradation, and that government regulation and intervention may be necessary to address these issues.
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One of the important features of capitalist economy is—a)Economi...
Price mechanism
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Features of a Mixed Economy:A mixed economy is an economic system that combines elements of both a market economy and a planned economy. It incorporates features of both private enterprise and government intervention. The correct answer is D, as all of the following features are characteristic of a mixed economy:1. Planned economy:A mixed economy includes elements of a planned economy, where the government plays a role in guiding and regulating economic activities. It formulates economic plans and policies to ensure the efficient allocation of resources and to promote economic stability.2. Dual system of pricing:In a mixed economy, there exists a dual system of pricing, which means that both market prices and government-set prices coexist. While market forces determine prices for most goods and services, the government may intervene to regulate prices in certain sectors to protect consumers or promote social welfare.3. Balanced regional development:Another characteristic of a mixed economy is the emphasis on balanced regional development. The government intervenes to ensure that economic growth and development are not concentrated in specific regions or industries but are spread across different regions and sectors. This helps to reduce regional disparities and promote overall economic stability and social welfare.Benefits of a Mixed Economy:A mixed economy offers several benefits due to its combination of market forces and government intervention. Some of these benefits include:1. Economic efficiency:By incorporating market mechanisms, a mixed economy allows for resource allocation based on supply and demand, which promotes economic efficiency. Market forces encourage competition, innovation, and productivity, leading to higher levels of economic growth.2. Social welfare:Government intervention in a mixed economy enables the provision of public goods and services that may not be adequately provided by the market alone. This includes areas such as healthcare, education, infrastructure, and social security, ensuring a certain level of social welfare and equity.3. Stability and regulation:The government's role in a mixed economy helps to maintain economic stability through macroeconomic policies such as fiscal and monetary measures. It also regulates certain sectors to prevent market failures, protect consumer rights, and ensure fair competition.Conclusion:A mixed economy combines the advantages of both market forces and government intervention. It allows for economic efficiency, social welfare, and stability. The features of a mixed economy include elements of a planned economy, a dual system of pricing, and balanced regional development. These features work together to create a system that promotes both economic growth and social welfare.

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One of the important features of capitalist economy is—a)Economic planningb)Price mechanismc)Economic equalitiesd)Social welfareCorrect answer is option 'B'. Can you explain this answer?
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