Multiple choice

The modern Indian economy is best characterised by

  1. market oriented mode of production

  2. capital intensive mode of production

  3. self-sufficient village system

  4. labour intensive mode of production
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

The modern Indian economy after 1991 liberalization is fundamentally market-oriented, with price signals, competition, and private enterprise driving production decisions. While India still has labour-intensive sectors due to abundant labor, the organizing principle is market allocation rather than being labour-intensive per se. The self-sufficient village system describes pre-independence subsistence economy.

Keep practicing — related questions