ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The government owns the means of production
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All wage earners are paid the same amount
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Labor unions are prohibited
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Businesses are driven by the desire for profits
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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: -One of the most important characteristics of a market economy, also called a free enterprise economy, is the role of a limited government. Most economic decisions are made by buyers and sellers, not the government. A competitive market economy promotes the efficient use of its resources.
Detailed explanation-3: -Most commonly, market economies feature government production of public goods, often as a government monopoly. But overall, market economies are characterized by decentralized economic decision making by buyers and sellers transacting everyday business.
Detailed explanation-4: -The key ingredient of the free enterprise system is the right of individuals to make their own choices in the purchase of goods, the selling of their products and their labor, and their partici-pation in business structure.
Detailed explanation-5: -Private ownership of resources. Free economies exist because a significant portion of resources are owned by individuals or companies in the private sector and not a central government agency. Thriving financial markets. Freedom to participate. 30-Nov-2022