Match List I with List II

List I	List II
A. Market economy	I. Government controlled
B. Service of a Teacher	II. Functioning of a mechanism
C. Centrally planned economy	III. Skill
D. Positive economy	IV. Private Controlled

Choose the correct answer from the options given below:

Correct option is C

The correct matches are:

• A (Market economy) matches with IV (Private controlled): A market economy is typically driven by private enterprise where the forces of supply and demand govern the production and distribution of goods and services.
• B (Service of a teacher) matches with III (Skill): Teaching is considered a skilled profession, requiring knowledge, experience, and continuous professional development.
• C (Centrally planned economy) matches with I (Government controlled): In a centrally planned economy, the government makes all economic decisions, including production and distribution.
• D (Positive economy) matches with II (Functioning of a mechanism): A positive economy involves studying economic systems based on observable and measurable factors, without value judgments.

Information Booster

• Market economies are based on the private sector and are characterized by limited government intervention. Prices are set through the laws of supply and demand.
• Centrally planned economies have government control over all significant aspects of the economy, such as production, pricing, and resource allocation.

Additional Knowledge

• Positive economics aims to describe and predict economic phenomena based on empirical data and objective analysis, while normative economics deals with value-based judgments about what ought to be.
• In mixed economies, both private and public sectors play significant roles in managing economic activities, combining elements of both market and centrally planned economies.