Choose the right answer from the four alternatives given below.In which one of the following types of economy are the factors of productionowned individually ?(a) Capitalist (c) Socialist(b) Mixed (d) None
Answers
Answer:
Option A which is capitalist
Answer: CAPITALIST
Explanation:
In a capitalist economy private businesses or individuals own capital goods. The factor of production of goods and services depends upon the supply and demand condition in the market. The private players in this economy determine where and how much to invest, what to produce or sell, and also fix the prices of the goods and services.
In a socialist economy the Government controls and regulates the economic system in order to achieve the goals of social welfare as well as provide equal opportunity to every section of the the people in the society.
Mixed economy follows a combination of both capitalism and socialism system. Under this system private players are given freedom to undertake economic activities and also the Government looks into and interferences for achieving social goals.
Hope this helps.