In Market socialism

The main concern(s) of Socialism is/are

1. Minimize existing inequality and distribute resources justly

2. Prevent market based distribution of goods and services

3. Cut down government regulation and planning to the least

Select the correct answer using the codes below.

With reference to the term Consumer surplus, consider the following statements.

1. Consumer surplus explains the situation of a buyers’ market where supply exceeds the demand.

2. Economies with a consumer surplus are developed economies.

Which of the above is/are correct?

US economist Richard Thaler won the 2017 Nobel Economics Prize for his contributions in the field of behavioural economics. The study of behavioural economics includes how market decisions are made and the mechanisms that drive public choice. In this context, consider the following:

1. As per Heuristics, most decisions made by humans are done using rules of thumb.

2. Mis-pricings and non-rational decision are part of market behaviour which are considered as market inefficiencies.

Which of the above is/are correct?

If an economy predominantly keeps producing consumption goods at the expense of capital goods it will lead to

1. Short term as well as long term inflation

2. A roadblock in the long-term growth

Which of the above is/are correct?