Question

Identify the correct statement .

• A. In socialist economy, the economic problems are solved by price mechanism.
• B. Study about level of unemployment in the country is a part of normative economics.
• C. Mixed economy has dual system of pricing.
• D. Production Possibilities curve is concave due to diminishing opportunity cost.

Answer 1

The correct option is C Mixed economy has dual system of pricing.

In mixed type economy (like India),in order to determine the equilibrium price and quantity in the market,free play of demand and supply forces takes place ,together with this government also intervenes in order to keep a check on inflationary and deflationary gap in an economy through certain fiscal and monetary policies.