ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The objective of providing incentives is to motivate an entrepreneur to set up a new venture in the larger interest of the nation and the society. Broadly, incentives include concessions, subsidies and bounties.

Detailed explanation-2: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

Detailed explanation-3: -It rewards innovation. Capitalism provides incentives for economic growth. Exciting new products may satisfy consumer demand better than existing products, and competitors will recognize that they can increase their profit by producing an innovative product.

Detailed explanation-4: -Entrepreneurs compare the expected benefits of entering a new enterprise with the expected costs. Entrepreneurs accept the risks in organizing resources to produce goods and services, and they hope to earn profits. More items