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

The question asks about the type of economy where the objective is public welfare. Let's examine each option:

• Capitalistic Economy: A capitalistic economy is characterized by private ownership, where the primary motive is profit maximization. Decisions are often driven by market forces and competition, not primarily focused on public welfare.
• Socialistic Economy: In a socialistic economy, the government typically owns and controls the means of production. The primary objective is to ensure equal distribution of resources and goods among the populace to ensure social welfare. Hence, public welfare is a primary focus.
• Market Economy: This is another term for a capitalistic economy. Decisions are made based on supply and demand, and again, the main goal is profit rather than public welfare.
• None of these: Since a socialistic economy indeed prioritizes public welfare, this option is incorrect.

Based on the above explanations, the correct answer is the Socialistic economy. This type of economy prioritizes the well-being of the public by ensuring equitable distribution of wealth and services across society, making it the economy focused on public welfare.