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What is a primary characteristic of a mixed economy?
What is a primary characteristic of a mixed economy?
Which criticism of the mixed economy is highlighted by left-wing economists?
Which criticism of the mixed economy is highlighted by left-wing economists?
What does the term 'mixed economy' imply regarding government involvement?
What does the term 'mixed economy' imply regarding government involvement?
Which of the following best describes the economic strategy of mixed economy with respect to planning and market mechanisms?
Which of the following best describes the economic strategy of mixed economy with respect to planning and market mechanisms?
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Why is the concept of a centrally planned economy considered unsuitable for India?
Why is the concept of a centrally planned economy considered unsuitable for India?
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What challenge does a purely market economy face in the context of India?
What challenge does a purely market economy face in the context of India?
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What is the main purpose of the mixed economic framework in India?
What is the main purpose of the mixed economic framework in India?
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What dilemma is associated with the decision to adopt a mixed economy?
What dilemma is associated with the decision to adopt a mixed economy?
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What characterizes a mixed economy in terms of decision-making in the private sector?
What characterizes a mixed economy in terms of decision-making in the private sector?
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Which statement reflects the ownership structure in a mixed economy?
Which statement reflects the ownership structure in a mixed economy?
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What is a key social objective promoted in a mixed economy?
What is a key social objective promoted in a mixed economy?
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How does the government maintain economic balance in a mixed economy?
How does the government maintain economic balance in a mixed economy?
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What approach does a mixed economy take regarding decision-making for economic growth?
What approach does a mixed economy take regarding decision-making for economic growth?
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What role does the public distribution system play in a mixed economy?
What role does the public distribution system play in a mixed economy?
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What is a significant difference between a mixed economy and pure capitalism?
What is a significant difference between a mixed economy and pure capitalism?
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What was recognized during the First Five Year Plan regarding economic development?
What was recognized during the First Five Year Plan regarding economic development?
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What was the main aim of establishing a mixed economy?
What was the main aim of establishing a mixed economy?
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Which Industrial Policy Resolution first sought to establish a mixed economy?
Which Industrial Policy Resolution first sought to establish a mixed economy?
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What categories were established for industries under the Industrial Policy Resolution of 1956?
What categories were established for industries under the Industrial Policy Resolution of 1956?
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Which Act conferred the government the power to regulate major industries through licensing?
Which Act conferred the government the power to regulate major industries through licensing?
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Which of the following industries was included in Schedule A under the 1956 Industrial Policy?
Which of the following industries was included in Schedule A under the 1956 Industrial Policy?
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What was a key feature of Schedule B industries?
What was a key feature of Schedule B industries?
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What role did the Avadi Resolution assign to the State in economic development?
What role did the Avadi Resolution assign to the State in economic development?
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What was one of the main concerns addressed by the Avadi Resolution regarding industrial development?
What was one of the main concerns addressed by the Avadi Resolution regarding industrial development?
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What role does the private sector have according to the Industrial Policy Resolution?
What role does the private sector have according to the Industrial Policy Resolution?
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Which industries are included in Schedule C?
Which industries are included in Schedule C?
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What was a primary criticism of the 1956 Industrial Policy Resolution?
What was a primary criticism of the 1956 Industrial Policy Resolution?
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What was emphasized in the new policy of 1977 regarding small scale and cottage industries?
What was emphasized in the new policy of 1977 regarding small scale and cottage industries?
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What did the resolution in support of private sector industries recognize about public sector industries?
What did the resolution in support of private sector industries recognize about public sector industries?
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According to the Industrial Policy Resolution, 1977, what impact did large business houses have?
According to the Industrial Policy Resolution, 1977, what impact did large business houses have?
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What was one of the aims of the Industrial Policy of 1977 regarding industrial costs and prices?
What was one of the aims of the Industrial Policy of 1977 regarding industrial costs and prices?
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Which industry sector received a prominent role in the Industrial Policy Resolution?
Which industry sector received a prominent role in the Industrial Policy Resolution?
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Which factor led to the abolition of industrial licensing for most projects?
Which factor led to the abolition of industrial licensing for most projects?
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What significant change was made to the MRTP Act?
What significant change was made to the MRTP Act?
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How many areas are now reserved for public sector investment?
How many areas are now reserved for public sector investment?
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What was the purpose of the National Renewal Fund?
What was the purpose of the National Renewal Fund?
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What increased the limit of foreign equity holdings in priority industries?
What increased the limit of foreign equity holdings in priority industries?
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In how many cities is government clearance required for project location?
In how many cities is government clearance required for project location?
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What is one of the roles of the Foreign Investment Promotion Board?
What is one of the roles of the Foreign Investment Promotion Board?
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What was discontinued for all new projects under the new policy?
What was discontinued for all new projects under the new policy?
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What was a primary focus of the Industrial Policy of 1980?
What was a primary focus of the Industrial Policy of 1980?
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Which act was utilized against the expansion of larger industrial houses?
Which act was utilized against the expansion of larger industrial houses?
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What significant industrial policy change occurred in July 1991?
What significant industrial policy change occurred in July 1991?
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What was a key objective of the new industrial policy initiatives announced in 1991?
What was a key objective of the new industrial policy initiatives announced in 1991?
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According to the Industrial Policy of 1980, what was the role of the public sector?
According to the Industrial Policy of 1980, what was the role of the public sector?
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What was one of the effects of the reforms in the 1980s on the Indian economy?
What was one of the effects of the reforms in the 1980s on the Indian economy?
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The 1956 Resolution formed the basis for which industrial policy?
The 1956 Resolution formed the basis for which industrial policy?
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Which of the following was NOT an objective of the new industrial policy initiatives in 1991?
Which of the following was NOT an objective of the new industrial policy initiatives in 1991?
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Study Notes
Mixed Economic Framework
- India's economic development is linked to its mixed economy approach, a decision with ongoing debate regarding its appropriateness.
- Some argue that the heavy industry bias, inadequate resource allocation, uncompetitive nature of the Indian economy, and high costs stem from this mixed economy approach. This involved significant government intervention and control.
- Other economists view the mixed economy framework as a way to legitimize a collaboration between capital and the state, a compromise heavily favoring vested interests.
- It's acknowledged that relying solely on market forces cannot address poverty, given India's cultural context and the large population living near subsistence levels.
- A centrally planned economy isn't a viable option for India. A mixed economy is considered the only feasible solution.
Salient Features of Mixed Economy
- A mixed economy involves a balance of public and private sectors, with the government intervening in the market to reinforce the two sectors rather than entirely controlling the market.
- It aims to create an achievable balance between individual initiative and social goals using planning and market mechanisms together to suit particular purposes.
- This approach seeks to align both sectors toward national objectives and priorities.
Capitalism
- Capitalism is an economic system centered around individual initiative, a market economy with profit as its primary driving force, and private ownership of production means.
- Key characteristics include:
- The Right of Private Property: Private ownership and control of resources with inherited rights.
- Freedom of Enterprise: The freedom to start and operate businesses without restrictions.
- Profit Motive: The impetus for economic activity driven by profit.
- Competition: Competition among producers, consumers, employers, and investors.
Socialism
- Socialism is an economic system where the means of production are owned and controlled by the whole community.
- Key features include:
- Public Ownership: Collective ownership of resources.
- Economic Planning: Central authority planning and coordinating.
- Social Welfare: Social welfare rather than private profit.
- Equitable Income Distribution: Equitable distribution of income is central.
Mixed Economy in India
- India's mixed economy model evolved through the First Five Year Plan and went beyond infrastructure and social services to directly promote industrial development.
- The mixed economy approach was further formalized and fleshed out in subsequent resolutions and development plans with specific priorities assigned for different industries.
- The Industrial Policy Resolution of 1956 established a framework for the mixed economy, assigning roles to both the public and private sectors.
- Public sector industries focused on strategic and critical sectors while private sector participation was encouraged across others.
Recent Trends and Appraisal
- The 1980s and 1990s saw changes to policy as India's economy expanded.
- Deregulation, emphasis on productivity, gainful employment, and entrepreneurship were emphasized.
- The 1991 policy statement aimed to build on past gains but also address certain weaknesses within the mixed economy.
- Several measures were introduced including abolishing industrial licensing in most sectors, easing restrictions on foreign investment, and greater private sector participation.
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Description
Explore the nuances of mixed economy through this quiz focused on its characteristics, criticisms, and implications in the context of India. Test your understanding of the balance between planning and market mechanisms as well as the challenges faced in adopting this economic framework.
