Question

What are the fundamental points on which capitalism depends

1. Right of freedom
2. Right of Contract
3. Right of inheritance
4. Right of personal gain

• A. iv only
• B. ii, iii
• C. All of these
• D. iii, iv

Answer 1

Answer:

C. All of these

Capitalism relies on several fundamental principles, including:

1. Private Property: Individuals and businesses have the right to own and control property and resources.

2. Market Economy: Prices and production are determined by supply and demand in free markets, allowing for competition and consumer choice.

3. Profit Motive: The primary goal of businesses is to generate profit, which drives innovation, efficiency, and economic growth.

4. Capital Accumulation: Individuals and companies can invest profits to create more wealth, fostering investment in new technologies and businesses.

5. Competition: The presence of multiple businesses in the market encourages innovation, lower prices, and better quality products and services.

6. Limited Government Intervention: While some regulation exists, capitalism generally advocates for minimal government interference in the economy, allowing market forces to operate freely.

7. Consumer Sovereignty: Consumers have the power to influence what is produced based on their preferences and spending choices.