Question

Read the given statements carefully.
Statement 1 : There is more economic freedom to a person in the Mixed Economy.
Statement 2 : There is more economic freedom to a person in the Socialistic Economy.
Choose the right answer in the light of above given statements :

• A. Statement 1 is incorrect and statement 2 is correct.
• B. Statement 2 is incorrect and statement 1 is correct.
• C. Both the statements are correct.
• D. Both the statements are incorrect.

Hint:

Market/Mixed Economy = High Individual Freedom.
Centrally Planned/Socialist = High State Control.

Answer 1

The Correct Option is B

Step 1: Understanding the Concept:
Economic freedom refers to the rights of individuals to own property, choose their occupation, and make production or consumption decisions without state interference.
Step 2: Detailed Explanation:
1. Socialistic Economy: The state owns the means of production and decides what to produce and for whom. Private property is limited, and individual economic choice is minimal.
2. Mixed Economy: It combines private and public sectors. While the government regulates, individuals are free to start businesses, own property, and choose goods.
Hence, Statement 1 is factually correct (Mixed economies offer freedom), and Statement 2 is incorrect (Socialism restricts individual economic freedom).
Step 3: Final Answer:
Therefore, Option (B) is the correct choice.