Question

Match List-I with List-II

List-I	List-II
(A) Traditional Economic System	(II) Ancient type of economy
(B) Command Economic System	(III) Large part of the economic system is controlled by centralized authority
(C) Market Economic System	(IV) Similar to a free market
(D) Mixed Economic System	(I) Dual Economy

• (A) - (I), (B) - (II), (C) - (IV), (D) - (III)
• (A) - (II), (B) - (III), (C) - (IV), (D) - (I)
• (A) - (I), (B) - (II), (C) - (III), (D) - (IV)
• (A) - (IV), (B) - (III), (C) - (I), (D) - (II)

Hint:

Remember the core control mechanism for each system: \textbf{Traditional} = Customs; \textbf{Command} = Government; \textbf{Market} = Individuals/Firms; \textbf{Mixed} = Government + Individuals.

Answer 1

The Correct Option is B

Step 1: Understanding Different Economic Systems:
Economic systems are the means by which countries and governments distribute resources and trade goods and services. They are used to control the five factors of production, including labor, capital, entrepreneurs, physical resources, and information resources.

Step 2: Analyzing and Matching Each System:


(A) Traditional Economic System: This system is based on customs, history, and time-honored beliefs. It depends on agriculture, fishing, hunting, and gathering. It is the most basic and ancient type of economy. This matches with (II).
(B) Command Economic System: In this system, a central governmental authority makes all major economic decisions regarding production and distribution. A large part of the economic system is controlled by a centralized power. This is also known as a planned economy. This matches with (III).
(C) Market Economic System: This system is based on supply and demand with little or no government control. Decisions are made by individuals and private firms. It is similar to a free market. This is also known as capitalism. This matches with (IV).
(D) Mixed Economic System: This system combines elements of both market and command economies. It features private ownership and control of most of the means of production, but often with government regulation. Many developing countries exhibit a dual economy, with a modern, market-based sector existing alongside a traditional, subsistence sector, a key feature of a mixed system in that context. This matches with (I).

Step 3: Forming the Correct Combination:
The correct pairings are: A $\rightarrow$ II, B $\rightarrow$ III, C $\rightarrow$ IV, D $\rightarrow$ I.

Step 4: Final Answer:
Looking at the options, option (B) matches our derived sequence.