Question

Characterstics of capitalist economy are _____________.

• A. Private Property and Freedom of ownership
• B. Right of Private Property
• C. Profit Motive
• D. All of the above

Answer 1

The correct option is D All of the above

The capitalist economy has the following features:

1.Private property and freedom of ownership: The individuals can purchase and sell the property as per their wish and this right cannot violated by anyone. Once a person dies, his property gets passed on to his successors/ children.

2Right to private property: In this, the individuals have the right to acquire private property and are free to purchase and sell it as per their wish.

3. Profit motive: Since the factors of production are controlled by individuals and businesses, all the parties try to maximize their profits at any cost. This feature is considered to be the soul of this type of economy.