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