Bank Exams Exam > Bank Exams Questions > Which of the following statements about marke...
Start Learning for Free
Which of the following statements about market economies is/are true?
(l) Individuals and private firms make the major decisions about production and consumption.
(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly
(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a 'laissez-faire' economy.
(l) Individuals and private firms make the major decisions about production and consumption.
(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly
(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a 'laissez-faire' economy.
- a)l, ll and lll
- b)ll, and III
- c)I, and II
- d)I and III
Correct answer is option 'A'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Which of the following statements about market economies is/are true?(...
Understanding Market Economies
Market economies are characterized by specific features that drive production and consumption decisions. Let's break down the statements provided to understand why option 'A' is the correct answer.
Statement I: Individuals and private firms make the major decisions about production and consumption.
- This statement is true. In a market economy, decisions regarding what to produce, how to produce it, and for whom are largely made by individuals and private firms. They respond to consumer preferences and market signals, leading to a decentralized decision-making process.
Statement II: Firms produce the commodities that yield the highest profits by the techniques of production that are least costly.
- This statement is also true. Firms in a market economy aim to maximize profits. They achieve this by producing goods that are in high demand and by utilizing the most cost-effective production methods. This competitive environment drives efficiency and innovation.
Statement III: The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.
- This statement is true as well. A laissez-faire economy is one where the government has minimal or no intervention in economic activities. It allows market forces to dictate production and consumption without regulatory constraints.
Conclusion
Since all three statements are correct regarding the characteristics of market economies, the correct answer is option 'A': statements I, II, and III are all true. This understanding is crucial for grasping the fundamental principles of economics, especially in the context of bank examinations.
Market economies are characterized by specific features that drive production and consumption decisions. Let's break down the statements provided to understand why option 'A' is the correct answer.
Statement I: Individuals and private firms make the major decisions about production and consumption.
- This statement is true. In a market economy, decisions regarding what to produce, how to produce it, and for whom are largely made by individuals and private firms. They respond to consumer preferences and market signals, leading to a decentralized decision-making process.
Statement II: Firms produce the commodities that yield the highest profits by the techniques of production that are least costly.
- This statement is also true. Firms in a market economy aim to maximize profits. They achieve this by producing goods that are in high demand and by utilizing the most cost-effective production methods. This competitive environment drives efficiency and innovation.
Statement III: The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.
- This statement is true as well. A laissez-faire economy is one where the government has minimal or no intervention in economic activities. It allows market forces to dictate production and consumption without regulatory constraints.
Conclusion
Since all three statements are correct regarding the characteristics of market economies, the correct answer is option 'A': statements I, II, and III are all true. This understanding is crucial for grasping the fundamental principles of economics, especially in the context of bank examinations.
Free Test
FREE
| Start Free Test |
Community Answer
Which of the following statements about market economies is/are true?(...
A market economy is one in which individuals and private firms make the major decisions, about production and consumption. A system of prices, markets, profits, losses, incentives, and rewards determines what, how, and for whom. Firms produce the commodities that yield the highest profits (the what) by the techniques of production that are least costly (the how). Consumption is determined by individuals' decisions about how to spend the wages and property incomes, generated by their labor and property ownership (for whom). The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a 'laissez-faire' economy. The term 'laissez-faire' means, in French, 'allow to do'.
Attention Bank Exams Students!
To make sure you are not studying endlessly, EduRev has designed Bank Exams study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Bank Exams.
|
Explore Courses for Bank Exams exam
|
|
Similar Bank Exams Doubts
Top Courses for Bank ExamsView all
Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer?
Question Description
Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? for Bank Exams 2024 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Bank Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer?.
Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? for Bank Exams 2024 is part of Bank Exams preparation. The Question and answers have been prepared according to the Bank Exams exam syllabus. Information about Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Bank Exams 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer?.
Solutions for Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Bank Exams.
Download more important topics, notes, lectures and mock test series for Bank Exams Exam by signing up for free.
Here you can find the meaning of Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer?, a detailed solution for Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? has been provided alongside types of Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following statements about market economies is/are true?(l) Individuals and private firms make the major decisions about production and consumption.(ll) Firms produce the commodities that yield the highest profits by the techniques of production that are least costly(lll) The extreme case of a market economy, in which the government does not interfere in economic decisions, is called a laissez-faire economy.a)l, ll and lllb)ll, and IIIc)I, and IId)I and IIICorrect answer is option 'A'. Can you explain this answer? tests, examples and also practice Bank Exams tests.
|
|
Explore Courses for Bank Exams 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