Types of economy

Who owns the resources in a Capitalist economy?

• Government

• Private Individuals

• Both Government and Individuals

• None of the above

Since one has freedom of enterprise in a capitalist economy, one can

• start any business of their choice

• choose any occupation

• cannot employ any labour

• can choose employer

• make any production decisions

What is the main motive of an entrepreneur under capitalism?

• social welfare

• government welfare

• maximum labourers

• maximum profit

How are prices determined in a capitalist economy?

• by the government

• by the producers

• by the forces of demand and supply

• by the consumers

What do you understand by "Consumer Sovereignty"

What is the role of the government in capitalism?

• government controls the prices

• government has no role

• government decides production activities

• government works for social welfare

What is the defining characteristic of capitalism?

• government ownership of all markets

• private ownership of resources and production

• exploitation of slave labor

• development of foreign markets

Someone who supports capitalism as an economic system would agree with which statement?

• Governments should control gold and silver to help the poor.

• Businesses should be owned by the government.

• Businesses should be privately owned by citizens.

• Governments should pass laws to keep trade fair.

In a true capitalist system, which group has the power to control the economy?

• the government

• producers and consumers

• the military

• elected and appointed officials

In a capitalist economy, what motivates merchants?

• being loyal to the king

• making money

• helping the poor

• honoring God