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Questions and Answers
What is the main driving force of capitalism?
What is the main driving force of capitalism?
Which of the following is a characteristic of a capitalist economy?
Which of the following is a characteristic of a capitalist economy?
In a capitalist economy, who determines economic activity?
In a capitalist economy, who determines economic activity?
What are some examples of a capitalist economy?
What are some examples of a capitalist economy?
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What is the role of the government in a capitalist economy?
What is the role of the government in a capitalist economy?
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Study Notes
Capitalist Economy
- The main driving force of capitalism is profit, which motivates individuals and businesses to invest and innovate.
Characteristics of a Capitalist Economy
- Private ownership: Means of production are owned by individuals and private companies, rather than by the state.
Determinants of Economic Activity
- Individuals and businesses: In a capitalist economy, individuals and businesses determine economic activity, such as what goods and services to produce, how to produce them, and at what prices to sell them.
Examples of Capitalist Economies
- United States: Known for its strong emphasis on private enterprise and free market principles.
- United Kingdom: Has a mixed economy, but with a strong capitalist component.
- Canada: Has a mixed economy, with a significant role for private enterprise.
Role of Government in a Capitalist Economy
- Limited intervention: The government plays a limited role in the economy, primarily focused on protecting property rights, enforcing contracts, and providing public goods.
- Regulation: Governments may regulate businesses to prevent monopolies and protect the environment, but generally do not directly control the means of production.
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Description
Test your knowledge about capitalism with this quiz! Explore the fundamental principles of this economic system, such as private property, profit motive, and the role of consumers and businesses. See how much you know about the predominant economic system in the modern global economy.
