Question

In which economy are the resources allocated for happiness and prosperity of the whole economy?

• A. Mixed economy
• B. Centralised economy
• C. Capitalist economy
• D. None of these

Hint:

A mixed economy combines private and public sector control to allocate resources, aiming for both economic efficiency and societal well-being.

Answer 1

The Correct Option is A

Step 1: Understanding different types of economies.
An economy can be classified into various types based on the distribution and control of resources. In a mixed economy, both the private and public sectors coexist and share control over resources. The allocation of resources is designed to benefit the entire economy, including the pursuit of prosperity and happiness for all.

Step 2: Analyzing the options.
(A) Mixed economy: Correct. In a mixed economy, resources are allocated in such a way that they benefit the overall economy, including the happiness and well-being of its citizens.
(B) Centralised economy: In a centralised economy, the government controls the allocation of resources. While the government may aim for societal welfare, it does not focus on prosperity and happiness for the entire economy as a primary goal.
(C) Capitalist economy: In a capitalist economy, resources are allocated based on market forces, typically prioritizing profit rather than general well-being or happiness.
(D) None of these: This is incorrect, as the correct answer is (A).

Step 3: Conclusion.
The resources in a mixed economy are allocated to benefit the prosperity and happiness of the entire economy. Therefore, the correct answer is (A) Mixed economy.