Classification on the Basis of Ownership
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___________ talked about communist economic system in his book.Marks:1
Karl Marx talked about the communist economic system in his book ‘Das Capital’. Soviet Russia was the first country in the world to establish a communist economy based on Marxian principles.
Consider the following statements and identify the wrong one.
Under capitalist economy production is carried on small scale and under government control.
Under a capitalist economy, production is carried on a large scale. Hence, low-cost goods are available to consumers. The goods are also of standard quality because there is competition.
___________ is a characteristic of capitalist economy.Marks:1
Freedom of enterprise
Freedom of enterprise and contract is a characteristic of a Capitalist economy. It implies that every individual has the freedom to initiate a business or occupation of his choice according to his ability and skills in a capitalistic economy.
___________ economy is also known as free economy and laissez-faire economy .Marks:1
A capitalistic economy is also known as a free economy in the sense it is based on a free economy and a laissez-faire economy in the sense that there is a complete non-interference by government in the economy.
Identify the correct definition of economy.Marks:1
An economy is a system of production and exchange of goods and services.
An economy is a system of production and exchange of goods and services. It performs two main functions:
(a) It produces goods and services to satisfy human wants.
(b) It provides employment or income-earning opportunities to people.