ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Market Economy
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Supply and Demand
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Freedom of Competition
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Classless Society
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Detailed explanation-1: -In Capitalism, the country’s trade and industry are controlled by private owners for profit, rather than by the state. Thus, Option 2 is not a characteristic of Capitalism.
Detailed explanation-2: -A capitalist economy is the one where the ownership of economy’s resources is in the hands of the private sector. Thus, collective ownership is not possible in a capitalist economy.
Detailed explanation-3: -Capitalism has many unique features, some of which include a two-class system, private ownership, a profit motive, minimal government intervention, and competition.
Detailed explanation-4: -The state or the government does not interfere in the price decision.
Detailed explanation-5: -’There is a central planning authority’ is not correct about capitalistic system. In fact, there is little or no government or central authority that takes market decisions.