Question

Capitalist economy is characterised by ___________.

• A. private ownership of resources
• B. freedom of enterprise
• C. consumer sovereignty
• D. all of the above

Answer 1

Answer: (D)

all of the above

Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. A capitalist economy relies on free-markets to determine, price, incomes, wealth and distribution of goods. Freedom of private business to organize and operate for profit in a competitive system without interference by government beyond regulation necessary to protect the public interest and keep the national economy in balance. Under capitalism, consumer sovereignty is an economic concept where the consumer has some controlling power over goods that are produced and the idea that the consumer is the best judge of their own welfare.

Hence, D is the correct option.