Which of the following is a feature of market mechanism system in methods of allotting resource?

All economic decisions are taken by Government.

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Ownership of resources of production is either private or individual.

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Equal and fair distribution of income.

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Gap between the rich and the poor is removed.

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Solution

The correct option is A All economic decisions are taken by Government.
In market mechanism, the government audits the overall output of the economy in order to ensure availability and efficient utilization of all the scarce resources in the economy.

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Q25. Which of the following statements are correct?

1. A mixed economy refers to market economy with strong regulatory oversight and governmental provision of public goods.

2. A socialist economic system is characterized by social ownership and democratic control of the means of production.

3. Capitalism is an economic system in which capital goods are owned by private individuals.

4. Marxian economics provided a foundation for capitalism.

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