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Questions and Answers
What is the source of profits in a capitalist economy?
What is the source of profits in a capitalist economy?
- Rent from landowners
- Exploitation of external resources
- Wages of laborers
- Savings from entrepreneurs (correct)
Why do industrial profits depend on agricultural production?
Why do industrial profits depend on agricultural production?
- Because of the price of food
- Due to the law of diminishing returns (correct)
- As a result of population growth
- Due to the inferiority of agricultural land
What is the role of entrepreneurs in a capitalist economy?
What is the role of entrepreneurs in a capitalist economy?
- To provide jobs for laborers
- To cultivate inferior land
- To increase the price of food
- To take risks and invest in new ventures (correct)
What is the relationship between profits and the market value of a product?
What is the relationship between profits and the market value of a product?
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What is the driving force behind economic development in a capitalist economy?
What is the driving force behind economic development in a capitalist economy?
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What did Malthus predict about the world?
What did Malthus predict about the world?
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What is the main contribution of David Ricardo to economics?
What is the main contribution of David Ricardo to economics?
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What has helped to offset the diminishing returns in agriculture?
What has helped to offset the diminishing returns in agriculture?
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What is the main reason why the predictions of the classical pessimists were not met?
What is the main reason why the predictions of the classical pessimists were not met?
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What is the main characteristic of the capitalist system?
What is the main characteristic of the capitalist system?
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