Question

Which of the following is associated with capitalism?

• A. Joint ownership
• B. Equal wages
• C. Market mechanism
• D. Centralized economic planning

Answer 1

Answer:

C. Market mechanism

Capitalism relies on the market mechanism to determine prices, production, and distribution of goods and services. Decisions are made based on supply and demand rather than centralized planning. Centralized planning, equal wages, and joint ownership are features more associated with socialism or communism, not capitalism.