Capitalism is an economic system in which private property, markets, and firms play an important role. Which of the following statements related to the terms in this definition are... Capitalism is an economic system in which private property, markets, and firms play an important role. Which of the following statements related to the terms in this definition are correct? Forced labour where the workers receive some daily allowance is an example of a market. Employee-owned cooperatives are not firms. An economic system is a way of organising the production and distribution of goods and services in an entire economy. The knowledge you attain from the CORE programme is considered private property.
Understand the Problem
The question is asking which statements regarding the definition of capitalism and its terms are correct. It is assessing the user's understanding of economic concepts related to capitalism, markets, firms, and property.
Answer
An economic system is a way of organising the production and distribution of goods and services.
The correct statement is 'An economic system is a way of organising the production and distribution of goods and services in an entire economy.' Employee-owned cooperatives are firms, and knowledge is not considered private property in the context of capitalism.
Answer for screen readers
The correct statement is 'An economic system is a way of organising the production and distribution of goods and services in an entire economy.' Employee-owned cooperatives are firms, and knowledge is not considered private property in the context of capitalism.
More Information
The statement about an economic system correctly defines its role in organizing production and distribution in an economy. Employee-owned cooperatives, contrary to the false statement, do function as firms by operating in markets to produce goods/services. Forced labor does not constitute a market.
Tips
Common mistakes include misinterpreting what constitutes a market or firm. Remember that markets involve voluntary exchanges, and firms are regardless of ownership structure.
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