Which of the following would not be emphasized in a capitalist economy?
A) private ownership of capital and other resources
B) competition and decentralized decisions regarding production and consumption
C) reliance on market forces to coordinate economic activity
D) prevention of ﬁrms from exposing themselves to ﬁnancial risk

Question

Quizplus · Accepted Answer

In a capitalist economy, firms are free to take financial risks and potentially suffer the consequences if they fail. This is because risk-taking can lead to innovation and growth, which ultimately benefits the economy as a whole. Therefore, preventing firms from exposing themselves to financial risk would not be emphasized in a capitalist economy.

Which of the Following Would Not Be Emphasized in a Capitalist