Which of the following statements about capitalism is most accurate?
A) Markets are the only means through which firms make decisions.
B) Markets are the primary means through which firms make decisions.
C) Markets and governments share equally in decision-making by firms.
D) Government is the primary means through which firms make decisions.
E) Governments are the only means through which firms make decisions.

Question

Quizplus · Accepted Answer

While governments do play a role in regulating markets and providing certain services, capitalism is primarily characterized by private ownership and control of resources and the use of markets as the main mechanism for allocating resources and determining prices. Therefore, option B – that markets are the primary means through which firms make decisions – is the most accurate statement about capitalism.

Which of the Following Statements About Capitalism Is Most Accurate