Question

Which of the following statements regarding Market Economy is not true?

• A. Price plays a major role in market economy.
• B. The Government controls production and distribution of goods.
• C. Consumers choose the goods they want.
• D. Efficiency is achieved through profit motive.

Answer 1

Answer: (B)

The Government controls production and distribution of goods.

Market economyhas private ownership where utilisation of resources and henceforth distribution of goods takes place for private gains.
The government has no role to play production and distribution of goods.