Economic Systems: Types and Characteristics

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In a market economy, what determines which consumer goods are produced?

The market forces of supply and demand (correct)

The government's directives

The needs of the society

The quantity of raw materials available

What determines whether more human labor or more capital is used for production in a market economy?

The availability of skilled workers

The preferences of the producers

The government's regulations

Whether labor is cheaper than capital (correct)

How are goods and services distributed in a capitalist society?

Based on governmental policies

Based on purchasing power (correct)

Based on people's needs

Equally among all citizens

Why might low-cost housing for the poor not be produced in a market economy?

Because it's not in demand Signup and view all the answers

What is the basis for distributing goods among people in a capitalist society?

Purchasing power Signup and view all the answers

What type of economy relies on supply and demand to determine the production of goods?

Market economy Signup and view all the answers

In a socialist society, who decides what goods are to be produced?

The government Signup and view all the answers

What is the basis of distribution in a socialist society?

People's needs Signup and view all the answers

What does a socialist society provide to all its citizens, unlike under capitalism?

Free health care Signup and view all the answers

Which statement is true about a socialist society's view on private property?

It has no private property since everything is owned by the state Signup and view all the answers

What type of economy involves both the government and the market in answering economic questions?

Mixed economy Signup and view all the answers

According to the passage, who is considered to know what is good for the people in a socialist society?

The government Signup and view all the answers

What principle is distribution under socialism supposed to be based on?

What people need Signup and view all the answers

What type of economy does Cuba have, according to the passage?

Socialist economy Signup and view all the answers

Which economic system provides free health care to all its citizens?

Socialist system Signup and view all the answers

Who provides essential goods and services in a mixed economy when the market fails to do so?

The government Signup and view all the answers

What were the specified goals of the five year plans in India?

Growth, modernization, self-reliance, and equity Signup and view all the answers

What does 'growth' refer to in the context of the five year plans?

Increase in the country's capacity to produce goods and services Signup and view all the answers

What was the role of the Planning Commission set up in 1950?

To specify goals for the five year plans Signup and view all the answers

How did the limited resources impact the choice of goals in each plan?

It made it necessary to prioritize certain goals over others Signup and view all the answers

Who is regarded as the architect of Indian planning?

Prasanta Chandra Mahalanobis Signup and view all the answers

Where was Prasanta Chandra Mahalanobis educated?

Presidency College, Calcutta and Cambridge University, England Signup and view all the answers

Which organization did Prasanta Chandra Mahalanobis establish in Calcutta?

Indian Statistical Institute (ISI) Signup and view all the answers

What was the share of the service sector in India's GDP by 1990?

40.59% Signup and view all the answers

What is the GDP?

The market value of all the final goods and services produced in the country during a year Signup and view all the answers

What milestone marked the onset of globalization in India?

Post 1991 period Signup and view all the answers

What does a growing share of the service sector in the GDP indicate for a country’s development?

Higher levels of development Signup and view all the answers

What does the author compare the GDP to?

'A cake' which represents the total goods and services produced in a country Signup and view all the answers

What organization did Prasanta Chandra Mahalanobis become a Fellow of in 1945?

Royal Society of Britain Signup and view all the answers

What did Prasanta Chandra Mahalanobis invite distinguished economists to advise him on?

India’s economic development Signup and view all the answers

"Modernisation: To increase the production of goods and services" refers to adopting what?

New technology Signup and view all the answers

What structural change indicates higher levels of development for a country?

A growing share of service sector and declining share of agriculture Signup and view all the answers

Why did the Soviet farmers pack rotten fruits along with fresh fruits in the same box?

There was no incentive for them to be efficient. Signup and view all the answers

What was the reason for the poor performance of the agricultural sector in the Soviet Union, despite the availability of fertile land?

The absence of ownership and lack of incentive for farmers to be efficient. Signup and view all the answers

What was the primary reason for India's need to import food from the United States of America?

Low productivity in the agricultural sector. Signup and view all the answers

What was the purpose of land ceiling policy in India?

To promote equity in the agricultural sector by reducing the concentration of land ownership in a few hands. Signup and view all the answers

What was the impact of abolition of intermediaries on tenants in India?

It gave tenants incentives to invest in making improvements on the farm. Signup and view all the answers

What was a challenge faced by land ceiling legislation in India?

'Loopholes exploited by big landlords to retain their land.' Signup and view all the answers

What led to the success of land reforms in Kerala and West Bengal?

'Governments committed to the policy of land to the tiller.' Signup and view all the answers

What caused stagnation in agriculture during colonial rule in India?

'Use of old technology.' Signup and view all the answers

Why were farmers in trouble during a short monsoon season in India?

'Lack of access to irrigation facilities.' Signup and view all the answers

What was the key factor that broke the stagnation in agriculture during colonial rule in India?

'Introduction of green revolution.' Signup and view all the answers

Why did some states like Kerala and West Bengal have better success with land reforms compared to other states?

Due to governments committed to the policy of land to the tiller. Signup and view all the answers

What refers to the increase in food grain production from the use of high yielding variety (HYV) seeds?

Green revolution Signup and view all the answers

What was vital for the application of high yielding variety (HYV) seeds?

Use of fertiliser and pesticide in correct quantities, regular supply of water, and correct proportions Signup and view all the answers

In which phase of the green revolution did the high yielding variety (HYV) technology spread to a larger number of states and benefit more variety of crops?

Second phase (mid-1970s to mid-1980s) Signup and view all the answers

What does the portion of agricultural produce sold in the market by the farmers refer to?

Market surplus Signup and view all the answers

What did the green revolution enable India to achieve in terms of food grains?

Self-sufficiency in food grains Signup and view all the answers

What was a risk associated with high yielding variety (HYV) crops during the green revolution?

Pest attacks and vulnerability for small farmers Signup and view all the answers

What steps did the government take to reduce the risk for small farmers adopting high yielding variety (HYV) technology?

Subsidizing fertilisers and providing loans at a low interest rate Signup and view all the answers

Who did the green revolution benefit besides rich farmers?

'Small farmers and rich farmers' Signup and view all the answers

What is a hotly debated question according to the passage?

Use of subsidies in agriculture Signup and view all the answers

What was generally agreed as necessary for adoption of new high yielding variety (HYV) technology by farmers?

Subsidies and incentives for small farmers Signup and view all the answers

What did the government provide to reduce the risk of small farmers being ruined by pest attacks on their crops?

Low interest rate loans and subsidized fertilisers Signup and view all the answers

What would have favored rich farmers only if the state did not play an extensive role according to the passage?

Green revolution technology Signup and view all the answers

Why do some economists believe that subsidies should be phased out once technology is widely adopted?

To stop the burden on the government's finances Signup and view all the answers

Why do some experts argue for the government to continue with agricultural subsidies?

To support poor farmers who cannot afford inputs Signup and view all the answers

What do some economists believe is the negative impact of subsidies on resources like water and electricity?

They lead to wasteful use of resources Signup and view all the answers

Why did a large proportion of the population remain engaged in agriculture in India from 1950 to 1990?

Because agricultural output could have grown with much less people working in the sector Signup and view all the answers

How do prices act as signals in the market according to the text?

Prices indicate the supply of goods Signup and view all the answers

What happens when electricity and water are provided at a subsidized rate or free according to some economists?

Wasteful use of resources increases Signup and view all the answers

Why is it argued that there is no case for continuing with fertiliser subsidies?

Because they put a huge burden on government finances Signup and view all the answers

What is the achievement mentioned in the text related to Indian agricultural productivity?

Sufficient increase in food grain production Signup and view all the answers

According to some experts, what could be a consequence of eliminating subsidies for poor farmers?

Potential violation of equity goals Signup and view all the answers

What is emphasized as a potential consequence of not allowing prices to indicate the supply of goods?

Wasteful use of resources Signup and view all the answers

What do some economists believe is the reason behind a large proportion of GDP still being contributed by agriculture despite a decline in its proportion?

Increase in population depending on agriculture Signup and view all the answers

What do some experts believe is the potential impact of eliminating subsidies for poor farmers?

Increase in inequality between rich and poor farmers Signup and view all the answers

What does modernisation refer to in the context of the passage?

Adoption of new technology and changes in social outlook Signup and view all the answers

What is the significance of self-reliance in promoting economic growth and modernisation?

It reduces the vulnerability of a nation's sovereignty to foreign interference Signup and view all the answers

What is the importance of equity in the context of economic development?

Ensuring that the benefits of economic prosperity reach the poor as well Signup and view all the answers

How did the policy makers of independent India address issues in the agricultural sector after independence?

By introducing land reforms and promoting the use of ‘High Yielding Variety’ (HYV) seeds Signup and view all the answers

What was the main objective of the policy of 'land to the tiller'?

To provide incentives to cultivators for increasing output Signup and view all the answers

In a traditional society, what is the role expected of women?

To remain at home while men work Signup and view all the answers

What did the first seven five year plans in India attempt to attain?

Growth, modernisation, and equity only Signup and view all the answers

What is the significance of ownership in providing incentives to cultivators?

Ownership enables cultivators to make profit from increased output Signup and view all the answers

Economic Systems: Types and Characteristics

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Questions and Answers

In a market economy, what determines which consumer goods are produced?

What determines whether more human labor or more capital is used for production in a market economy?

How are goods and services distributed in a capitalist society?

Why might low-cost housing for the poor not be produced in a market economy?

What is the basis for distributing goods among people in a capitalist society?

What type of economy relies on supply and demand to determine the production of goods?

In a socialist society, who decides what goods are to be produced?

What is the basis of distribution in a socialist society?

What does a socialist society provide to all its citizens, unlike under capitalism?

Which statement is true about a socialist society's view on private property?

What type of economy involves both the government and the market in answering economic questions?

According to the passage, who is considered to know what is good for the people in a socialist society?

What principle is distribution under socialism supposed to be based on?

What type of economy does Cuba have, according to the passage?

Which economic system provides free health care to all its citizens?

Who provides essential goods and services in a mixed economy when the market fails to do so?

What were the specified goals of the five year plans in India?

What does 'growth' refer to in the context of the five year plans?

What was the role of the Planning Commission set up in 1950?

How did the limited resources impact the choice of goals in each plan?

Who is regarded as the architect of Indian planning?

Where was Prasanta Chandra Mahalanobis educated?

Which organization did Prasanta Chandra Mahalanobis establish in Calcutta?

What was the share of the service sector in India's GDP by 1990?

What is the GDP?

What milestone marked the onset of globalization in India?

What does a growing share of the service sector in the GDP indicate for a country’s development?

What does the author compare the GDP to?

What organization did Prasanta Chandra Mahalanobis become a Fellow of in 1945?

What did Prasanta Chandra Mahalanobis invite distinguished economists to advise him on?

"Modernisation: To increase the production of goods and services" refers to adopting what?

What structural change indicates higher levels of development for a country?

Why did the Soviet farmers pack rotten fruits along with fresh fruits in the same box?

What was the reason for the poor performance of the agricultural sector in the Soviet Union, despite the availability of fertile land?

What was the primary reason for India's need to import food from the United States of America?

What was the purpose of land ceiling policy in India?

What was the impact of abolition of intermediaries on tenants in India?

What was a challenge faced by land ceiling legislation in India?

What led to the success of land reforms in Kerala and West Bengal?

What caused stagnation in agriculture during colonial rule in India?

Why were farmers in trouble during a short monsoon season in India?

What was the key factor that broke the stagnation in agriculture during colonial rule in India?

Why did some states like Kerala and West Bengal have better success with land reforms compared to other states?

What refers to the increase in food grain production from the use of high yielding variety (HYV) seeds?

What was vital for the application of high yielding variety (HYV) seeds?

In which phase of the green revolution did the high yielding variety (HYV) technology spread to a larger number of states and benefit more variety of crops?

What does the portion of agricultural produce sold in the market by the farmers refer to?

What did the green revolution enable India to achieve in terms of food grains?

What was a risk associated with high yielding variety (HYV) crops during the green revolution?

What steps did the government take to reduce the risk for small farmers adopting high yielding variety (HYV) technology?

Who did the green revolution benefit besides rich farmers?

What is a hotly debated question according to the passage?

What was generally agreed as necessary for adoption of new high yielding variety (HYV) technology by farmers?

What did the government provide to reduce the risk of small farmers being ruined by pest attacks on their crops?

What would have favored rich farmers only if the state did not play an extensive role according to the passage?

Why do some economists believe that subsidies should be phased out once technology is widely adopted?

Why do some experts argue for the government to continue with agricultural subsidies?

What do some economists believe is the negative impact of subsidies on resources like water and electricity?

Why did a large proportion of the population remain engaged in agriculture in India from 1950 to 1990?

How do prices act as signals in the market according to the text?

What happens when electricity and water are provided at a subsidized rate or free according to some economists?

Why is it argued that there is no case for continuing with fertiliser subsidies?

What is the achievement mentioned in the text related to Indian agricultural productivity?

According to some experts, what could be a consequence of eliminating subsidies for poor farmers?

What is emphasized as a potential consequence of not allowing prices to indicate the supply of goods?

What do some economists believe is the reason behind a large proportion of GDP still being contributed by agriculture despite a decline in its proportion?

What do some experts believe is the potential impact of eliminating subsidies for poor farmers?

What does modernisation refer to in the context of the passage?

What is the significance of self-reliance in promoting economic growth and modernisation?

What is the importance of equity in the context of economic development?

How did the policy makers of independent India address issues in the agricultural sector after independence?

What was the main objective of the policy of 'land to the tiller'?

In a traditional society, what is the role expected of women?

What did the first seven five year plans in India attempt to attain?

What is the significance of ownership in providing incentives to cultivators?

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