Classification on the Basis of Ownership

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  • Q1

    ___________ talked about communist economic system in his book.

    Marks:1
    Answer:

    Karl Marx

    Explanation:

    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.

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  • Q2

    Consider the following statements and identify the wrong one.

    Marks:1
    Answer:

    Under capitalist economy production is carried on small scale and under government control.

    Explanation:

    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.

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  • Q3

    ___________ is a characteristic of capitalist economy.

    Marks:1
    Answer:

    Freedom of enterprise

    Explanation:

    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.

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  • Q4

    ___________ economy is also known as free economy and laissez-faire economy .

    Marks:1
    Answer:

    Capitalistic

    Explanation:

    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.

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  • Q5

    Identify the correct definition of economy.

    Marks:1
    Answer:

    An economy is a system of production and exchange of goods and services.

    Explanation:

    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.

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