Question

Which of the following are criticisms often associated with Capitalism?

1. Income inequality
2. Lack of economic incentives
3. Excessive government intervention
4. Market instability
5. Egalitarian wealth distribution

• A. i only
• B. i, iv, v
• C. v only
• D. ii, iii

Answer 1

Answer:

B. i, iv, v

Capitalism

• Capitalism is an economic and social system characterized by private ownership of the means of production, where individuals or corporations engage in economic activities for profit and compete in open markets.
• It is one of the dominant economic systems in the world and has been influential in shaping modern societies and economies. 

The criticisms often associated with Capitalism includes:

• Income Inequality:
• • Income inequality is one of the most frequently cited criticisms of capitalism
  • In a capitalist system, wealth and income are often distributed unequally.
  • The pursuit of profit and the private ownership of resources and businesses can lead to significant disparities in wealth between the affluent and the less privileged. 
• Market Instability:
• • Market instability can be a criticism of capitalism, particularly during economic downturns or financial crises.
  • Capitalist economies are characterized by business cycles, with periods of growth followed by recessions. 
    
    
• Exploitation of Labor:
• • Critics argue that capitalism can sometimes exploit labor, particularly in industries with low-wage jobs and poor working conditions.
  • Workers may face long hours, low wages, inadequate benefits, and job insecurity, all in the pursuit of profit.
    
    
• Environmental Concerns:
• • Capitalism's focus on profit maximization can lead to over-exploitation of natural resources, environmental degradation, and a disregard for long-term sustainability.
  • Critics argue that market-driven economies often prioritize short-term gains over environmental protection.