Question:medium
China adopted _________ strategy in which farmers and industries bought and sold certain quantities at government fixed prices, while remaining transactions occurred at market prices.
China adopted _________ strategy in which farmers and industries bought and sold certain quantities at government fixed prices, while remaining transactions occurred at market prices.
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Dual pricing → Part fixed price + part market price
Updated On: Mar 19, 2026
- Dual Pricing
- Special Economic Zones
- Great Proletarian Cultural Revolution
- Great Leap Forward
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The Correct Option is A
Solution and Explanation
Step 1: Understanding the Concept:
During its economic reforms, China used a unique pricing mechanism to transition from a command economy to a market economy.
Step 2: Detailed Explanation:
In the reform period, China introduced the "Dual Pricing System".
Under this, farmers and industrial units were required to buy and sell a fixed quantity of inputs and outputs at prices set by the government (quota system).
Any production over and above this quota could be bought or sold at market-determined prices.
This allowed the economy to enjoy market incentives while maintaining state stability.
Step 3: Final Answer:
The strategy of using two different pricing sets for the same commodity is known as Dual Pricing.
During its economic reforms, China used a unique pricing mechanism to transition from a command economy to a market economy.
Step 2: Detailed Explanation:
In the reform period, China introduced the "Dual Pricing System".
Under this, farmers and industrial units were required to buy and sell a fixed quantity of inputs and outputs at prices set by the government (quota system).
Any production over and above this quota could be bought or sold at market-determined prices.
This allowed the economy to enjoy market incentives while maintaining state stability.
Step 3: Final Answer:
The strategy of using two different pricing sets for the same commodity is known as Dual Pricing.
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