2022 · Q106
Which one of the following central features is not associated with Capitalist Economy ?
General KnowledgeIndian Economy
- AThere is generalised commodity production - it has market value.
- BProductive wealth is held predominantly in private hands.
- CEconomic life is organised according to market principles.
- DEconomic organisation is based on planning, a supposedly rational process of resource allocation.
Explanation
Capitalism is characterised by generalised commodity production, predominantly private ownership of productive wealth, and organisation of economic life by market principles. Economic organisation through central planning is the hallmark of a socialist, not capitalist, economy. Hence planning-based allocation is not a capitalist feature.