UPSC Exam > UPSC Questions > Consider the following statements: In a ...
Start Learning for Free
Consider the following statements:
In a market economy, all economic decisions are taken by the government in consultation with the private sector.
In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market.
In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare.
Which of the statements given above is/are Correct?
- a)1 and 2 only
- b)3 only
- c)2 and 3 only
- d)1, 2 and 3
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Consider the following statements: In a market economy, all econo...
The correct answer is option 'C' - Statements 2 and 3 only. Let's understand each statement and why they are correct or incorrect.
1. In a market economy, all economic decisions are taken by the government in consultation with the private sector.
This statement is incorrect. In a market economy, economic decisions are primarily taken by individuals and businesses in the private sector, based on the principle of supply and demand. The government's role in a market economy is to create and enforce regulations, ensure fair competition, and protect property rights. The government may consult with the private sector on certain matters, but it does not make all economic decisions.
2. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market.
This statement is correct. In a mixed economy, both the government and the private sector play a significant role in making economic decisions. The government intervenes in the economy to provide public goods and services, regulate industries, promote social welfare, and address market failures. At the same time, the majority of economic activities are conducted through the market, where individuals and businesses interact freely to buy and sell goods and services.
3. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare.
This statement is correct. In a centrally planned economy, also known as a command economy, the government has control over the means of production. The government owns and operates industries, decides what goods and services to produce, sets production targets, determines prices, and allocates resources. The objective of a centrally planned economy is often to achieve social welfare and equity rather than maximize profits or individual wealth.
In summary, the correct statements are:
2. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market.
3. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare.
1. In a market economy, all economic decisions are taken by the government in consultation with the private sector.
This statement is incorrect. In a market economy, economic decisions are primarily taken by individuals and businesses in the private sector, based on the principle of supply and demand. The government's role in a market economy is to create and enforce regulations, ensure fair competition, and protect property rights. The government may consult with the private sector on certain matters, but it does not make all economic decisions.
2. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market.
This statement is correct. In a mixed economy, both the government and the private sector play a significant role in making economic decisions. The government intervenes in the economy to provide public goods and services, regulate industries, promote social welfare, and address market failures. At the same time, the majority of economic activities are conducted through the market, where individuals and businesses interact freely to buy and sell goods and services.
3. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare.
This statement is correct. In a centrally planned economy, also known as a command economy, the government has control over the means of production. The government owns and operates industries, decides what goods and services to produce, sets production targets, determines prices, and allocates resources. The objective of a centrally planned economy is often to achieve social welfare and equity rather than maximize profits or individual wealth.
In summary, the correct statements are:
2. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market.
3. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare.
Free Test
FREE
| Start Free Test |
Community Answer
Consider the following statements: In a market economy, all econo...
Option (c) is the correct answer.
- Statement 1 is incorrect: In a market economy, all economic activities such as supply and demand interactions, individuals freely exchanging their products with each other etc. are organised through the market without any government interference. There may be some government intervention or planning, but usually it refers to an economy that is more market oriented in general. In this kind of an economy most economic decision making is done through voluntary transactions according to the laws of supply and demand. Hence the arrangement which allows people to buy and sell commodities freely are the defining features of a market economy.
- Statement 2 is correct: Most of the economies are mixed economies, where some important decisions are taken by the government and the economic activities are by and large conducted by the market. The extent of government control varies, for example in the United States of America the role of government is minimal whereas in China, the role of the government is much more interventionist.
- Statement 3 is also correct: in a centrally planned economy, the government or the central authority plans all the important activities in the economy. All important decisions regarding production, exchange, and consumption of goods and services are made by the government.Centrally-planned economic mandates surrounding the production of goods and services are often executed by state owned enterprises, which are government-created legal entities that engage in commercial activities on a government's behalf. The government may try to achieve a particular allocation of resources and distribution of final goods and services which is thought to be desirable for society as a whole.
Attention UPSC Students!
To make sure you are not studying endlessly, EduRev has designed UPSC study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in UPSC.
|
Explore Courses for UPSC exam
|
|
Similar UPSC Doubts
Top Courses for UPSCView all
Consider the following statements: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?
Question Description
Consider the following statements: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct 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: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct 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: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
Consider the following statements: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct 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: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct 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: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. 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: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Consider the following statements: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Consider the following statements: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Consider the following statements: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Consider the following statements: In a market economy, all economic decisions are taken by the government in consultation with the private sector. In a mixed economy, some important decisions are taken by the government and the economic activities are by and large conducted through the market. In a centrally planned economy, factors of production are owned and operated by the government with an objective of social welfare. Which of the statements given above is/are Correct?a)1 and 2 onlyb)3 onlyc)2 and 3 onlyd)1, 2 and 3Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice UPSC tests.
|
|
Explore Courses for UPSC exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup