Question

Assertion (A): In the USA, the private sector owns and manages all the means of production, but the government also frames rules and policies to govern the private players.

Reasoning (R): All the countries lie somewhere between a purely capitalist and purely socialist economy.

• A. Both A and R are true, but R is not the correct explanation of A.
• B. Both A and R are true, and R is the correct explanation of A.
• C. A is true, but R is false.
• D. Both A and R are false.

Answer 1

The correct option is B Both A and R are true, and R is the correct explanation of A.

All countries have mixed economies. But the extent of the role of the government and private players differ in each country. Some are more towards a capitalist economy and some towards a socialist economy. For example, China is more of a socialist economy than a capitalist economy.