Question

In a capitalist economy, the means of production are

• A. Owned and operated by the government.
• B. Privately owned and operated for profit.
• C. Owned by the workers and operated collectively.
• D. Controlled by a central planning agency.

Answer 1

Answer:

B. Privately owned and operated for profit.

Capitalist Economy

• An Economy in which the means of production are privately owned and operated for profit.

Characteristics of a Capitalist Economy

• Entrepreneurs have the freedom to produce any product.

• Private property rights.

• Profit-oriented activity.

• Traditional system of property transfer.

• Free market with no price controls.

• Examples of capitalist countries- United States of America, United Kingdom