Question

capitalism in modern European economy​

Answer 1

Explanation:

A profit maximising capitalist firm is likely to ignore negative externalities, such as pollution from production; this can harm living standards. Similarly, a free-market economy will under-provide goods with positive externalities, such as health, public transport and education.

Answer 2

A primary cause of the shift away from feudalism was increased foreign trade,

which led to the emergence of a new class of merchant capitalist.

This boom led to many European countries growing rich from taxes and attempting to boost their share of trade by establishing colonial empires.

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