Introduction to Business EconomicsPYQ Dec 23Question 759 of 209
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The Communist Manifesto published in 1848 by Karl Marx and Frederic Engels Propounded the concept of

Options

ACapitalist economy
BSocialist economy
CLaissez-faire economy
DFree market economy
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Correct Answer

✅ Option b — Socialist economy

All Options:

  • ACapitalist economy
  • BSocialist economy
  • CLaissez-faire economy
  • DFree market economy

Detailed Solution & Explanation

To answer this question, let's break it down into steps: • The Communist Manifesto, published in 1848 by Karl Marx and Frederic Engels, is a foundational document of communist thought, which emphasizes the role of class struggle in shaping society. • The manifesto critiques the capitalist system and proposes an alternative economic system, where the means of production are owned and controlled by the community as a whole, rather than by individual capitalists. • This alternative system is known as socialism, which is characterized by the collective ownership of the means of production, distribution, and exchange of goods and services. • The correct answer is socialist economy because the Communist Manifesto propounds the concept of socialism as a replacement for the capitalist system, with the goal of achieving greater economic equality and social justice. • Options like capitalist economy and free market economy are incorrect because they represent the very systems that the Communist Manifesto critiques and seeks to replace, with the former emphasizing private ownership and the latter emphasizing minimal government intervention in economic matters.

About This Chapter: Introduction to Business Economics

Paper

Paper 4: Business Economics

Weightage

5%

Key Topics

Meaning, Scope, Price Mechanism

This chapter lays the groundwork for understanding Business Economics as a discipline. It covers the meaning, scope, and nature of economics — including key distinctions like Microeconomics vs Macroeconomics, Positive vs Normative economics, and the fundamental economic problem of scarcity. Students learn how businesses use economic principles for decision-making in a competitive marketplace.

View Official ICAI Syllabus

Exam Strategy Tip

Focus on definitions and distinctions between concepts. Questions often test whether you understand the difference between Micro and Macro, or Positive and Normative statements.

Related Comparison Tables

Microeconomics vs Macroeconomics: The Complete CA Foundation GuidePositive vs Normative Economics: Fact vs Opinion

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