Q. With reference to the different type of global economic systems, consider the following statements Distribution under socialism is supposed to be based on what people need and not on what they can afford to purchase. In India’s model of socialism, the private sector was kept out of purview of five-year plans, to operate freely in the country. Which of the statements given above is/are correct? Options: A . &nbsp1 only B . &nbsp2 only C . &nbspBoth 1 and 2 D . &nbspNeither 1 nor 2

Q. With reference to the different type of global economic systems, conside

Question

Q. With reference to the different type of global economic systems, consider the following statements

Distribution under socialism is supposed to be based on what people need and not on what they can afford to purchase.

In India’s model of socialism, the private sector was kept out of purview of five-year plans, to operate freely in the country.

Which of the statements given above is/are correct?

Options:

A . 1 only

B . 2 only

C . Both 1 and 2

D . Neither 1 nor 2

Answer: Option A
:
A
Explanation:
Statement 1 is correct: Distribution of goods and services under socialism is based on what people require and not on what they can afford to purchase. Unlike under capitalism, for example, a socialist nation provides free healthcare to all its citizens. Whereas the healthcare system in a capitalist country is controlled by market forces and at a price decided by factors of market.
Statement 2 is incorrect: India decided to adopt a model of socialist society with a strong public sector, with private property and democracy. Under this model, the government planned for the economy and the private sector was not set free to operate. What products the private sector is allowed to manufacture was controlled by the government initially. This sector was kept under control by a licensing system.

Was this answer helpful ?

Next Question