Understanding Capitalism Concepts

In a capitalist economy, which of the following is considered a form of capital?

• The land on which a factory is built

• The sewing machines used in a clothing factory

• The workers in a factory

• The oil used to power machines

Which of the following best describes the role of labor in a capitalist system?

• Labor refers to the natural resources used in production

• Labor is the money invested in businesses

• Labor includes the human skills and abilities used to produce goods

• Labor is the profit made by businesses

What is the primary goal of businesses in a capitalist economy?

• To provide public services

• To make a profit

• To reduce environmental impact

• To create government policies

Which of the following is an example of a resource in a capitalist economy?

• A company's brand name

• A forest used for timber

• A worker's skill in carpentry

• A sewing machine

In a capitalist society, how is income typically generated through wages?

• By investing in stocks

• By earning money from rental properties

• By completing tasks and getting paid for work

• By selling goods at a market

Which of the following statements is true about capitalism?

• All businesses are owned by the government

• Businesses are privately owned and aim to make a profit

• There is no competition between businesses

• Resources are evenly distributed by the government

What is the relationship between capital and production in a capitalist economy?

• Capital is the profit made from production

• Capital is the labor used in production

• Capital is the tools and goods used to produce other goods

• Capital is the natural resources used in production

Which of the following is NOT a characteristic of capitalism?

• Private ownership of businesses

• Government control of all resources

• Profit-driven enterprises

• Competition among businesses

How do resources contribute to production in a capitalist economy?

• Resources are used to create goods and services

• Resources are the profits made by businesses

• Resources are the skills of the workforce

• Resources are the taxes collected by the government

Which of the following best describes the concept of labor in capitalism?

• Labor is the machinery used in factories

• Labor is the financial capital invested in businesses

• Labor is the human effort and skills used in production

• Labor is the land used for agriculture