Economics · Economic Systems

Analyze the following statements regarding the three main economic systems (Market, Planned, and Mixed): 1. In a Market Economy, the primary motivation for resource owners is profit maximization, directed to achieve efficiency. 2. A key problem of a Planned Economy is the failure of the Central Planning Board to efficiently manage vast informational requirements. 3. Consumer Sovereignty is perfectly realized in a Market Economy and is entirely absent in a Planned Economy. 4. The tendency towards income inequality is a significant disadvantage of a Market Economy, which often necessitates intervention. 5. A Mixed Economy like India involves constant tradeoffs between Economic Efficiency and Social Equity. 6. Private ownership of means of production is a common feature shared by Market and Mixed Economies, distinguishing them from a purely Planned Economy. Which of the above statements are correct?