Join 60,000+ competitive exam aspirants
or with email
Your Cart
SubtotalтВ╣0
TotalтВ╣0
Examoogle тАв User тАв info@examoogle.com тАв EE-2024-8821
Chapter 1 of 12 тАв Page 1 of 248ЁЯФТ Protected PDF тАв Watermarked
Join 60,000+ competitive exam aspirants
The collective ownership, the absence of consumer choice, and the absence of competition are all features of a ____ economy.
socialist
mixed
free market
capitalist
socialist
A socialist economy is characterized by state control over the means of production, where the government makes economic decisions to ensure social welfare rather than profit maximization. This centralization inherently limits consumer choice and eliminates competition, as the state acts as the sole provider of essential goods and services.
A socialist economy is characterized by state control over the means of production, where the government makes economic decisions to ensure social welfare rather than profit maximization. This centralization inherently limits consumer choice and eliminates competition, as the state acts as the sole provider of essential goods and services.
Article 38 of the Indian Constitution, which directs the State to minimize inequalities in income and eliminate inequalities in status and facilities, reflects the socialist ideals incorporated into the Preamble by the 42nd Amendment Act of 1976.
State ownership of means of production prevents private monopolies but often leads to reduced operational efficiency.
Central planning committees determine the production quantity and pricing rather than market forces like supply and demand.
Socialist economies prioritize equitable distribution of resources over individual market freedom.
In a socialist model, price mechanisms are frequently replaced by rationing or government-fixed price caps to keep goods affordable.
The concept of a 'Mixed Economy', adopted by India in 1948, blends socialist planning with capitalist market mechanisms.
Option C (Free market) and D (Capitalist) are opposites, where production is driven by private profit and consumer demand, fostering high competition.
Option B (Mixed economy) allows for both public and private sectors to coexist, providing a platform for competition while maintaining state-run social programs.
A is correct тАФ A socialist economy is defined by state control and planning, which restricts market-driven competition and diverse consumer choice.
When studying Indian Economy, link this to the 'Five-Year Plans' (1951-2017), which were heavily inspired by the Soviet socialist model of central planning before the 1991 LPG reforms shifted India toward a more liberalized mixed economy.
Get instant step-by-step AI explanations, full shift Previous Year Papers (SSC GD, RRB, SSC JE), and regional rank analysis on the official Examoogle App.
Free Download тАв 100K+ Aspirants