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Consider the following statements regarding a purely capitalist economy:
1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.
2. There is no restriction on the ownership of assets and accumulation of wealth.
3. The goods produced are distributed among people on the basis of people's needs.
4. The government coordinates the production decisions of the citizens.
1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.
2. There is no restriction on the ownership of assets and accumulation of wealth.
3. The goods produced are distributed among people on the basis of people's needs.
4. The government coordinates the production decisions of the citizens.
Which of the above statements are not correct?
- a)1 and 2 only
- b)1, 3 and 4 only
- c)3 and 4 only
- d)1, 2, 3 and 4
Correct answer is option 'C'. Can you explain this answer?
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Most Upvoted Answer
Consider the following statements regarding a purely capitalist econom...
- Capitalism is an economic system in which private individuals or businesses own capital goods. The production of goods and services is based on supply and demand in the general market-known as a market economy-rather than through central planning-known as a planned economy or command economy. The purest form of capitalism is free market or laissez- faire capitalism.
- In a capitalist economy, the government does not coordinate the production decisions of the citizens. Individuals are free to choose any occupation. The firms are also free to sell their product in the markets of their choice. So, statement 4 is not correct.
- The capitalist or free enterprise economy is the oldest form of economy. Earlier economists
supported the policy of 'laissez fair' meaning leaves free. They advocated minimum
government intervention in economic activities. So, statement 1 is correct. - 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. So, statement 3 is not correct. - In a capitalist system, all individuals have the right to own property. An individual can acquire property and use it for the benefit of his own family. There is no restriction on iand ownership, machines, mines, factories and to earn profit and accumulate wealth. So, statement 2 is correct.
Therefore, the answer is (c).
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Consider the following statements regarding a purely capitalist econom...
Explanation:
1. Minimum Governmental Interference:
The first statement is correct. A purely capitalist economy is indeed based on the policy of minimum governmental interference in the economic affairs of individuals. This means that the government does not intervene in the market forces of supply and demand.
2. No Restriction on Ownership of Assets:
The second statement is also correct. In a capitalist economy, there are no restrictions on the ownership of assets and the accumulation of wealth. Individuals and businesses are free to own property and accumulate wealth as they see fit.
3. Distribution Based on Needs:
The third statement is incorrect. In a purely capitalist economy, goods are not distributed among people based on their needs. Instead, goods are distributed based on the ability to pay for them. This means that those who can afford to purchase goods and services will receive them, while those who cannot afford them may go without.
4. Government Coordination of Production Decisions:
The fourth statement is also incorrect. In a capitalist economy, the government does not coordinate the production decisions of the citizens. Instead, production decisions are made by individual businesses based on market forces and competition.
Therefore, the correct answer is option C, as statements 3 and 4 are not correct in the context of a purely capitalist economy.
1. Minimum Governmental Interference:
The first statement is correct. A purely capitalist economy is indeed based on the policy of minimum governmental interference in the economic affairs of individuals. This means that the government does not intervene in the market forces of supply and demand.
2. No Restriction on Ownership of Assets:
The second statement is also correct. In a capitalist economy, there are no restrictions on the ownership of assets and the accumulation of wealth. Individuals and businesses are free to own property and accumulate wealth as they see fit.
3. Distribution Based on Needs:
The third statement is incorrect. In a purely capitalist economy, goods are not distributed among people based on their needs. Instead, goods are distributed based on the ability to pay for them. This means that those who can afford to purchase goods and services will receive them, while those who cannot afford them may go without.
4. Government Coordination of Production Decisions:
The fourth statement is also incorrect. In a capitalist economy, the government does not coordinate the production decisions of the citizens. Instead, production decisions are made by individual businesses based on market forces and competition.
Therefore, the correct answer is option C, as statements 3 and 4 are not correct in the context of a purely capitalist economy.
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Consider the following statements regarding a purely capitalist economy:1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.2. There is no restriction on the ownership of assets and accumulation of wealth.3. The goods produced are distributed among people on the basis of peoples needs.4. The government coordinates the production decisions of the citizens.Which of the above statements are not correct?a)1 and 2 onlyb)1, 3 and 4 onlyc)3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?
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Consider the following statements regarding a purely capitalist economy:1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.2. There is no restriction on the ownership of assets and accumulation of wealth.3. The goods produced are distributed among people on the basis of peoples needs.4. The government coordinates the production decisions of the citizens.Which of the above statements are not correct?a)1 and 2 onlyb)1, 3 and 4 onlyc)3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. 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 a purely capitalist economy:1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.2. There is no restriction on the ownership of assets and accumulation of wealth.3. The goods produced are distributed among people on the basis of peoples needs.4. The government coordinates the production decisions of the citizens.Which of the above statements are not correct?a)1 and 2 onlyb)1, 3 and 4 onlyc)3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. 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 a purely capitalist economy:1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.2. There is no restriction on the ownership of assets and accumulation of wealth.3. The goods produced are distributed among people on the basis of peoples needs.4. The government coordinates the production decisions of the citizens.Which of the above statements are not correct?a)1 and 2 onlyb)1, 3 and 4 onlyc)3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements regarding a purely capitalist economy:1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.2. There is no restriction on the ownership of assets and accumulation of wealth.3. The goods produced are distributed among people on the basis of peoples needs.4. The government coordinates the production decisions of the citizens.Which of the above statements are not correct?a)1 and 2 onlyb)1, 3 and 4 onlyc)3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. 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 a purely capitalist economy:1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.2. There is no restriction on the ownership of assets and accumulation of wealth.3. The goods produced are distributed among people on the basis of peoples needs.4. The government coordinates the production decisions of the citizens.Which of the above statements are not correct?a)1 and 2 onlyb)1, 3 and 4 onlyc)3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. 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 a purely capitalist economy:1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.2. There is no restriction on the ownership of assets and accumulation of wealth.3. The goods produced are distributed among people on the basis of peoples needs.4. The government coordinates the production decisions of the citizens.Which of the above statements are not correct?a)1 and 2 onlyb)1, 3 and 4 onlyc)3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements regarding a purely capitalist economy:1. It is based on the policy of minimum governmental interference in the economic affairs of individuals.2. There is no restriction on the ownership of assets and accumulation of wealth.3. The goods produced are distributed among people on the basis of peoples needs.4. The government coordinates the production decisions of the citizens.Which of the above statements are not correct?a)1 and 2 onlyb)1, 3 and 4 onlyc)3 and 4 onlyd)1, 2, 3 and 4Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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