In the context of mixed economy of India, 'For whom to produce' is decided by _____ in the economy.
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
Option 2: a combination of market forces and government intervention
Explanation:
In a mixed economy like India, both private and public sectors play a role. The decision of “for whom to produce” is not determined solely by market forces but also involves government intervention. The market operates on demand and supply, while the government ensures social welfare, equity, and support for weaker sections. For example, welfare schemes and public distribution systems are implemented by the government. Thus, this decision is made through a combination of market forces and state intervention.
Additional Facts:
Option 1: Market forces alone are not sufficient.
Option 3: This relates to international trade agreements.
Option 4: Government alone does not decide in a mixed economy.
Probable Exam Questions:
Q: What is a mixed economy?
A: Combination of private and public sectors
Q: India follows which type of economy?
A: Mixed economy
Q: What determines “what to produce”?
A: Resources and demand
Q: Which body replaced Planning Commission?
A: NITI Aayog