Which of the following is a characteristic of capitalism?
A) Government ownership of all capital.
B) Government decision-making is preferred to decentralized decision-making.
C) Market determination of prices and quantity.
D) Equality of income.

Question

Quizplus · Accepted Answer

Market determination of prices and quantity is a defining feature of capitalism, where individuals and businesses make their own economic decisions based on market conditions rather than government intervention. Government ownership of all capital (A) and government decision-making as preferred over decentralized decision-making (B) are characteristics of a planned or command economy, not capitalism. Equality of income (D) is not a characteristic of capitalism, which allows for income inequality based on the value of goods and services produced.

Which of the Following Is a Characteristic of Capitalism