Question

Which of the following are the advantages of a capitalist economy?

• A. Profit for the industrialists is of primary importance
• B. No government regulation
• C. Price mechanism
• D. All of the above

Answer 1

The correct option is D All of the above

Advantages of capitalist economy are as follows:-
a) No government regulation.
b) Price mechanism.
c) Democratic.
d) Profit.
e) Self interest.
As no government rule and regulation is applied under this economy so the private enterprises can earn more and more profit and their whole focus is in profit. The inspiring force in this system is self-interest. It leads to hard work and to earn maximum income by satisfying their consumers.