Question

In which country, besides capitalist sector, the state also plays a role in the economy?

• A. Developed country
• B. Developing country
• C. Both (A) and (B)
• D. None of these

Hint:

In both developed and developing countries, the state plays a crucial role in economic planning, regulation, and providing public goods.

Answer 1

The Correct Option is C

Step 1: Understanding the role of the state in the economy.
In most modern economies, the state plays a significant role alongside the capitalist sector. This role varies by country, but typically includes regulations, public services, and sometimes direct ownership of certain industries. In both developed and developing countries, the state plays an important role in ensuring economic stability and growth.

Step 2: Analyzing the options.
(A) Developed country: In developed countries, the state often plays a role in regulating markets and providing public goods and services.
(B) Developing country: In developing countries, the state may have a more direct role in the economy, often involved in planning and economic development.
(C) Both (A) and (B): Correct. Both developed and developing countries have state involvement in their economies, though the degree and manner of involvement may differ.
(D) None of these: This is incorrect, as the state plays a role in both developed and developing countries.

Step 3: Conclusion.
The correct answer is (C) Both (A) and (B), as the state plays a role in the economy in both developed and developing countries.