Read the following statement given below and choose the correct alternative Statement 1 In a capital...........

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Read the following statement given below and choose the correct alternative

Statement 1- In a capitalist economy, goods and services are distributed on the basis of what people actually need

Statement 2- In a socialist economy, goods and services are distributed on the basis of purchasing power

Both are correct

Both are incorrect

Statement 1 is correct and statement 2 is incorrect

Statement 1 is incorrect and statement 2 is correct

Explanation:

- Statement 1: In a capitalist economy, goods and services are distributed based on market demand and purchasing power rather than need. So, this statement is incorrect.

- Statement 2: In a socialist economy, goods and services are often distributed based on need or predetermined plans rather than purchasing power. So, this statement is also incorrect.

- Option 1: Both statements are correct. However, this option is not valid as both statements are incorrect.

- Option 2: Both statements are incorrect. This option is valid since neither statement accurately explains the characteristics of capitalist or socialist economies.

- Option 3: This suggests the first statement is correct and the second is incorrect. This is false.

- Option 4: This suggests the first statement is incorrect and the second is correct. This is also false.