Which of the following statements related to the terms in the definition of capitalism are correct? Employee-owned cooperatives are not firms. An economic system is a way of organi... Which of the following statements related to the terms in the definition of capitalism are correct? Employee-owned cooperatives are not firms. An economic system is a way of organizing the production and distribution of goods and services in an entire economy. Forced labour where the workers receive some daily allowance is an example of a market. The knowledge you attain from the CORE programme is considered private property.
Understand the Problem
The question is asking for an evaluation of the given statements related to capitalism and whether they are correct in the context of the provided definition. Each statement needs to be assessed based on the principles of capitalism.
Answer
An economic system is a way of organizing the production and distribution of goods and services in an entire economy.
The correct statement is: An economic system is a way of organizing the production and distribution of goods and services in an entire economy.
Answer for screen readers
The correct statement is: An economic system is a way of organizing the production and distribution of goods and services in an entire economy.
More Information
In the context of capitalism, private property, markets, and firms are fundamental elements. The other statements contain inaccuracies: employee-owned cooperatives are considered firms; forced labor with allowances doesn't align with market principles; and knowledge isn't classified as private property in the same way physical assets are.
Tips
A common mistake is thinking that employee-owned cooperatives aren't firms, as well as misunderstanding how markets are defined and what constitutes private property.
Sources
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