ECONOMICS (CBSE/UGC NET)

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: -Producers are motivated by the profits they expect to gain from the goods or services they offer. Their incentive to produce-the thing that motivates them-is the idea that consumers will want or need what they are offering.

Detailed explanation-3: -In investing, a developed market is a country that is most developed in terms of its economy and capital markets. The country must be high income, but this also includes openness to foreign ownership, ease of capital movement, and efficiency of market institutions.

Detailed explanation-4: -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-5: -The desire to earn profits and avoid losses motivates businesses to produce things that consumers need and want. Profits are an incentive for businesses to produce more of their product and to invest more in their business. Losses do the opposite.