ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The quantity of goods and services, consumers are willing to buy at a specific price.
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Individuals and businesses are free to own and trade goods and invest in businesses.
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An incentive that encourages entrepreneurs to take business risks in the hope of making a profit.
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An economic system that blends elements of the command economy and the market economy.
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Detailed explanation-1: -Capitalism refers to an economic system where private businesses can have ownership of capital goods. As per capitalism meaning, individuals can privately own means of production. In capitalism, the production of products is according to the situation in the market.
Detailed explanation-2: -While they may seem similar, these two concepts refer to different things. Capitalism is focused on the creation of wealth and ownership of capital and factors of production, whereas a free market system is focused on the exchange of wealth or goods and services.
Detailed explanation-3: -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-4: -In a capitalist economy, property and businesses are owned and controlled by individuals. In a socialist economy, the state owns and manages the vital means of production. However, other differences also exist in the form of equity, efficiency, and employment.
Detailed explanation-5: -Capitalism is based around a free-market economy, meaning an economy that distributes goods and services according to the laws of supply and demand.