Q. With reference to Nordic Model of social democracy, consider the following statements;
1.It is the combination of social welfare and economic systems adopted by countries such as Sweden, Norway and Finland.
2.The model does not have any features of capitalism.
3.The model has high taxes, high degree of government intervention and relatively low gross domestic product (GDP).
Which of the statements given above is/are correct?

[A] 1 only

[B] .2 and 3 only

[C] .1 and 3 only

[D] 1, 2 and 3

Answer: C
Notes:

Statement 1 is correct: The Nordic model, also known as the Scandinavian model, is the combination of social welfare and economic systems adopted by Nordic countries (Sweden, Norway, Finland, Denmark, and Iceland).

Statement 2 is incorrect: It combines features of capitalism, such as a market economy with social benefits, such as state pensions and income distribution.

Statement 3 is correct: The model has high taxes, high degree of government intervention and relatively low gross domestic product (GDP).

Source: The Hindu