1.

Which of the following are features of a capitalist economy:1. Production is based upon the market2. Means of production are controlled by the private sector3. Labour services are based upon wage rateChoose the correct code-1. 1 and 2 only2. 2 and 3 only3. 1 2 and 3 only4. 1 only

Answer» Correct Answer - Option 3 : 1 2 and 3 only

The correct answer is 1 2 and 3.

  • Capitalist economies like the USA have these three as the essential component of their economic system.
    • Means of production like machinery, buildings are owned by entrepreneurs.
    • Production takes place for the market and 
    • The labour market decides the wage rate.
  •  Therefore all three statements are correct.

  • Social Economies- the government determines what products are to be manufactured in accordance with the requirements of society.
  • Mixed Economy - mixed economic systems are also called dual economic systems. it comprises of both market and state contributed factors.


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