#1 In a centrally planned economy, the ____________ plans all the important activities in the economy.
A centrally planned economy is an economic system in which the state or government makes economic decisions rather than the these being made by the interaction between consumers and businesses.
#2 What is the meaning of ‘Laissez Faire Policy’?
Laissez–faire, (French: “allow to do”) policy of minimum governmental interference in the economic affairs of individuals and society. … The doctrine of laissez–faire is usually associated with the economists known as Physiocrats, who flourished in France from about 1756 to 1778.
#3 ‘Law of demand’ implies that when there is excess demand for a commodity, then –
The price of the product is said to be the equilibrium price if it is such that the value of the excess demand function is zero: that is, when the market is in equilibrium, meaning that the quantity supplied equals the quantity demanded.
#4 The demand curve shows that price and quantity demanded are-
A demand schedule is a table that shows the quantity demanded at different prices in the market. A demand curve shows the relationship between quantity demanded and price in a given market on a graph. The law of demand states that a higher price typically leads to a lower quantity demanded.
#5 The Indian economy can be most appropriately described as a-
There are primarily two types of economies capitalist or free market economy and socialist economy. Mixed economy is a median between these two main economies taking some characteristics of either of them. We have adopted mixed economy in India. All the basic industries such as railways, post and telegraph, defence production, atomic energy etc. are in the public sector. Industries dealing with consumer goods are in the private sector. India has a pubic private partnership economy