Market System

Q. The distribution of resources depends on the scope of profits in a socialist system.

1. False
2. True

Q. Which of the following is referred to as the invisible hand in the market?

1. Capital
2. Competition
3. Exploitation
4. Labour

Q. Imagine you are the President of country X. Country X had gone through a severe crisis that has resulted in unemployment, poverty, and less capital formation. As a solution, which of the following economic systems would you choose for different cases? Choose the correct option.

A: Socialist system if your country is a developing economy and experiences inequality among people

B: Capitalist system if your country is a developed economy and does not experience inequality among people

1. Only A
2. Only B
3. Both A and B
4. Neither A nor B

Q. Choose the correct option regarding the capitalist system by taking the following statements into consideration.

Assertion (A): The capitalist system is also known as free economy.

Reason (R): In a capitalist system, the interference of the government is maximum.

1. Both A and R are true, and R is the correct explanation of A.
2. Both A and R are true, but R is not the correct explanation of A.
3. A is true, but R is false.
4. A is false, but R is true.

Q. Was privatisation of Air India necessary? With the example of Air India, explain the advantages and disadvantages of privatisation.

Q. Which of the following countries have adopted the market system?

1. France
2. India
3. Japan
4. USA

Q. Which of the following is anonymous to each other?

1. Market system and capitalist system
2. Social system and market system
3. Mixed system and market system
4. Social system and mixed system

Q. Competition between the industries is detrimental in a market system.

1. False
2. True

Q. Which of the following is not a limitation of the market system?

1. Competition
2. Exploitation of consumers
3. Exploitation of natural resources
4. Monopoly