Question

Public welfare is the objective of which economy?

• A. Capitalistic economy
• B. Socialistic economy
• C. Market economy
• D. None of these

Hint:

While Capitalism focuses on "Profit Motive," Socialism focuses on "Social Welfare," and a Mixed Economy (like India's) attempts to balance both.

Answer 1

The Correct Option is B

Economic systems are categorized based on how they allocate resources and what their primary driving force is—whether it be private profit or collective well-being.

Step 1: Analyze the options.
(A) Capitalistic economy: This system is driven by private ownership and the motive of individual profit. Resource allocation is determined by market forces (supply and demand).
(B) Socialistic economy: In this system, the means of production are owned or regulated by the community or the state. The central goal is to ensure equitable distribution of resources and maximize public welfare rather than private profit.
(C) Market economy: This is essentially another term for a capitalistic economy where decisions regarding investment, production, and distribution are guided by the price signals created by supply and demand.
(D) None of these: This is incorrect as option (B) accurately describes the economy focused on welfare.

Step 2: Conclusion.
Because a socialistic economy prioritizes social justice and the needs of all citizens over individual gain, public welfare is its core objective.
Final Answer: \[ \boxed{(B) \, \text{Socialistic economy}} \]