Understanding Capitalism

What is a key characteristic of capitalism regarding ownership?

• Government owns all businesses.

• Private individuals or businesses own production.

• Only large corporations can own businesses.

• Ownership is restricted to local entities.

How does capitalism encourage innovation?

• By providing subsidies to all businesses.

• Due to competition among businesses.

• By limiting competition.

• Through government regulations.

Which of the following is an advantage of capitalism?

• High level of freedom for sellers and buyers.

• Centralized control of resources.

• Fixed pricing for all goods.

• Equal distribution of wealth.

What is a potential downside of capitalism related to wages?

• Wages are standardized for all workers.

• Wages are the same across all industries.

• Wages may be lower for some workers.

• Wages are determined by the government.

How can capitalism lead to increased waste?

• Due to excessive consumption of some products.

• Through government-mandated production quotas.

• Because of strict environmental regulations.

• By limiting consumer choices.