As businesses and industries of Bom become privately owned, many people lose their jobs. More goods and services are available and prices fall, but people cant afford to buy much. Elections are held and new leaders are chosen. The new leaders take control of the largest and most important businesses and hire people. They also hire people for public service jobs such as sweeping streets and repairing public buildings. What type of economic system does Bom have?

ECONOMIC SYSTEMS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As businesses and industries of Bom become privately owned, many people lose their jobs. More goods and services are available and prices fall, but people can’t afford to buy much. Elections are held and new leaders are chosen. The new leaders take control of the largest and most important businesses and hire people. They also hire people for public service jobs such as sweeping streets and repairing public buildings. What type of economic system does Bom have?

A	Communism
B	Capitalism
C	Socialism
D	None of the above

Explanation:

Detailed explanation-1: -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-2: -If production, allocation, and ownership are 100% controlled by government, then we call such an economic system as Socialism.

Detailed explanation-3: -A market economy is an economic system in which individuals, rather than the state, own most of the resources. This includes land, labor, and capital. In a market economy, individuals control the use and price of these resources through voluntary decisions made in the marketplace.

Detailed explanation-4: -Economics is the study of how a society uses scarce resources to produce and distribute goods and services. The resources of a person, a firm, or a nation are limited. Hence, economics is the study of choices-what people, firms, or nations choose from among the available resources.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC SYSTEMS