Question

Which of the following is not correct about capitalistic system?

• A. Too much of waste due to cut throat competition.
• B. There is right of private property.
• C. Conditions are not favourable for equitable distribution of wealth.
• D. There is central planning authority

Answer 1

The correct option is D There is central planning authority

‘There is a central planning authority’ is not correct about capitalistic system. In fact, there is little or no government or central authority that takes market decisions. The prices are determined by the free interaction of the forces of demand and supply. It is an automatic self-regulating mechanism which runs with the motive of profit.