[amp_mcq option1=”Individuals and associations behave with economic motive of maximising their profit with least sacrifice or cost” option2=”The country’s major means of production are either owned by the government or their use is controlled by the government” option3=”Producers, consumers and employees compete among themselves, as the resources and opportunities are limited” option4=”Price, the invisible hand, plays a predominant role in the flow of the factors of production and consumption” correct=”option2″]<\/p>\n
The correct answer is: B. The country’s major means of production are either owned by the government or their use is controlled by the government.<\/p>\n
Capitalism is an economic system based on the private ownership of capital and the means of production. In a capitalist system, individuals and businesses are free to buy and sell goods and services, and to invest in and own property. The government’s role in a capitalist system is to provide a stable environment for businesses to operate in, and to protect private property rights.<\/p>\n
Socialism is an economic system in which the means of production are owned and controlled by the state. In a socialist system, the government plans and controls the economy, and businesses are owned and operated by the state.<\/p>\n
The key difference between capitalism and socialism is the role of the government in the economy. In a capitalist system, the government plays a limited role, while in a socialist system, the government plays a much larger role.<\/p>\n
Option A is a characteristic of capitalism. In a capitalist system, individuals and businesses are motivated to maximize their profits. This is because profits are a measure of success in a capitalist system.<\/p>\n
Option C is also a characteristic of capitalism. In a capitalist system, producers, consumers, and employees compete with each other. This competition drives down prices and leads to innovation.<\/p>\n
Option D is also a characteristic of capitalism. In a capitalist system, the price of goods and services is determined by supply and demand. This is known as the “invisible hand” of the market.<\/p>\n
Option B is not a characteristic of capitalism. In a capitalist system, the means of production are owned by individuals or businesses. The government does not own or control the means of production in a capitalist system.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”Individuals and associations behave with economic motive of maximising their profit with least sacrifice or cost” option2=”The country’s major means of production are either owned by the government or their use is controlled by the government” option3=”Producers, consumers and employees compete among themselves, as the resources and opportunities are limited” option4=”Price, the invisible hand, … <\/p>\n