Help needed, would appreciate it:)

Question

What is capitalism?
A. An economic system which focuses mainly on agriculture and food production

B. An economic system in which companies compete for markets and profits

C. An economy in which the government owns and controls the means of production

D. A system in which monopolies are encouraged and supported by consumers

Answer 1

Hi Amanda, the answer is B.

 

Capitalism is an economic system in which the "free market" determines the worth and distribution of goods. The free market is the population of the nation, the average citizen. Essentially capitalism lets us deal with money and products as we wish to.

 

The answer is not A, because it doesn't matter what is focused on in capitalism. The only thing that matters is that companies compete for markets and products.

 

The answer is not C because that would be communism, or forms of socialism. Capitalism involves an absence of government from production of goods.

 

It is not D, because, aside from absence of government, capitalism is neutral as to how the market is regulated. consumers may favor monopolies, they may not.

 

Christian Carley