Question : Assertion: Mixed economy combines elements of both market and command economies.
Reason: Mixed economies rely solely on government intervention to allocate resources effectively.
Option 1: Both the assertion and reason are true, and the reason is a correct explanation of the assertion.
Option 2: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Option 3: The assertion is true, but the reason is false.
Option 4: The assertion is false, but the reason is true.
Correct Answer: Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Solution : The correct answer is (b) Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
The assertion is a blend of market-based mechanisms and government intervention. It incorporates elements of both market-oriented decision-making and government control over certain aspects of the economy. Mixed economies typically have a combination of private ownership of resources and businesses, along with government regulation and intervention to varying degrees.
However, the reason provided, is not a correct explanation of the assertion. In a mixed economy, resource allocation is not solely dependent on government intervention. While the government does play a role in regulating and guiding economic activity, mixed economies also rely on market mechanisms, such as supply and demand, price signals, and competition, to allocate resources effectively. The extent of government intervention can vary, and it is not limited to exclusive reliance on government control for resource allocation.
Therefore, the correct answer is (b) Both the assertion and reason are true, but the reason is not a correct explanation of the assertion.
Question : Assertion: A mixed economy combines elements of both market and command economies.
Reason: In a mixed economy, the government intervenes to correct market failures and ensure equitable distribution of resources.
Question : Assertion: Market economy is characterized by decentralized decision-making and private ownership of resources.
Reason: Market economies rely on government intervention to allocate resources efficiently.
Question : Assertion: Command economy is characterized by central planning and government control over resources.
Reason: Command economies allow for individual decision-making and private ownership of businesses.
Question : Assertion: The concept of marketing considers profit maximization as its primary goal.
Reason: The concept of marketing is solely concerned with product development.
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