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

Question

Quizplus · Accepted Answer

Capitalism is an economic system characterized by private ownership of the means of production, decentralized decision-making, and market determination of prices and quantity. In capitalism, individuals and businesses have the freedom to produce and exchange goods and services in a competitive market, with little interference from the government. Therefore, market determination of prices and quantity is a fundamental characteristic of capitalism. The other options are not true for capitalism.

Which of the Following Is a Characteristic of Capitalism