Question

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

Assertion (A): All economic activities like investment, production, and distribution are controlled by the state.

Reason (R): To address the requirements of the society and avoid producing luxurious and unimportant commodities.

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

Answer 1

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

A socialist system refers to a system where the resources are owned by the state and social welfare is prioritised over profit. It focuses on the distribution of resources, discourages wastage of resources, and protects consumers from exploitation.