INSIGHT UPSC QUIZ

ANSWER: (D)

• An economic system is a means by which societies or governments organize and distribute available resources, services, and goods across a geographic region or country. Economic systems manage elements of production, combining wealth, labour, physical resources, and business people. 

Types of Economic Systems

• Capitalist economy: In a capitalist system, the products manufactured are divided among people, not according to what they want but on the basis of purchasing power, which is the ability to buy products and services. 
• Mixed economy: Mixed systems have characteristics of both the command and the market economic system. 
• This means an individual needs to have the money with him to buy the goods and services. 
• The low-cost housing for the underprivileged is much required but will not include demand in the market because the needy do not have the buying power to back the demand. 
• Therefore, the commodities will not be manufactured and provided as per market forces. It is also called market economy system.
• Socialist/Command economy: This economy system acknowledges the three inquiries in a different way. Under this structure, power is centralised either to the government or a sole ruler. In turn, they decide the rules of the game and command how economic interactions take place. In a socialist society, the government determines what products are to be manufactured in accordance with the requirements of the society. It is believed that the government understands what is appropriate for the citizens of the country. Therefore, the passions of individual buyers are not given much attention. 
• The government concludes how products are to be created and how the product should be disposed of. In principle, sharing under socialism is assumed to be based on what an individual needs and not what they can buy. 
• A socialist system does not have a separate estate because everything is controlled by the government.
• For this purpose, the mixed economic systems are also known as dual economic systems. However, there is no sincere method to determine a mixed system. 
• Sometimes, the word represents a market system beneath the strict administrative control in certain sections of the economy.
• There is no such system as the cartel economy. A cartel is a group of independent market participants who collude with each other in order to improve their profits and dominate the market.

ANSWER: (A)

Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 

• Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) provides a legal guarantee for one hundred days of employment in every financial year to adult members of any rural household willing to do public work-related unskilled manual work at the statutory minimum wage. 
• An additional 50 days of wage employment are provided over and above 100 days in the notified drought affected areas or natural calamity areas in the country on recommendation of the Ministry of Agriculture and Farmers Welfare. 
• The Ministry also mandates the provision of additional 50 days of wage employment to every Scheduled Tribe Household in a forest area, provided that these households have no other private property except for the land rights provided under the FRA Act, 2006.
• Statement 3 is not related to the given question. Hence only statements 1 and 2 are correct.
• The Central Employment Guarantee Council has been constituted under Section 10 of the MGNREGA. It is chaired by the Minister of Rural development. It is responsible for advising the Central Government on MGNREGA related matters, and for monitoring and evaluating the implementation of the Act.