Multiple Choice Questions on is a market where economic agents can freely exchange their endowments with each other ........ for Common University Entrance Test (CUET) Preparation

Consumer Behaviour and Demand

Economics (CUET)

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Indian Economy - Understanding the basics of Indian economic system

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    ________is a market where economic agents can freely exchange their endowments with each other.

    This questions was previously asked in
    CUET ECONOMIC Previous Year Paper 2024

    Market economy

    Correct Answer

    Centrally planned economy

    Incorrect Answer

    Aggregate demand based economy

    Incorrect Answer

    Aggregate supply based economy

    Incorrect Answer
    Explanation:

    - Market economy is a system where economic agents can freely exchange their endowments with each other. Supply and demand determine prices, and the government has minimal intervention.

    - Centrally planned economy is characterized by the government making all decisions about the production and distribution of resources. Individuals have little control over what they produce or consume.

    - Aggregate demand based economy focuses on total demand within the economy, but it is not a standalone type of economic structure.

    - Aggregate supply based economy is centered on the total supply but similarly isn't a standalone type of economic structure.

    - Answer: Market economy is correct as it fits the description given.


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