The Profit Motive Quiz
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Questions and Answers

Which of the following is NOT a driving force behind capital allocation in for-profit corporations?

  • Bondholders
  • The profit motive
  • Charitable contributions (correct)
  • Shareholders
  • What is the role of competition in a capitalist economy?

  • To create monopolies
  • To maintain a competitive landscape (correct)
  • To eliminate innovation
  • To set prices for goods and services
  • What determines the prices of goods and services in a capitalist economy?

  • The government
  • The consumers of the goods and services (correct)
  • The sellers of the goods and services
  • The producers of the goods and services
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