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Which of the following is not a feature of “capitalist economy”?
- a)Ownership of means of production is with the private
- b)A great part of the production is used for private consumption
- c)Labour services are purchased and sold at a price
- d)Production takes place for selling the output in the market
Correct answer is option 'B'. Can you explain this answer?
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Which of the following is not a feature of “capitalist economy&#...
Explanation: A capitalist economy can be defined as an economy in which most of theeconomic activities have the following characteristics (a) there is private ownership of means ofproduction (b) production takes place for selling the output in the market (c) there is sale andpurchase of labour services at a price which is called the wage rate (the labour which is soldand purchased against wages is referred to as wage labour).
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Which of the following is not a feature of “capitalist economy&#...
Features of a Capitalist Economy
Right to Private Property: This is the essence of capitalism. This right means that private property such as property, factories, machines, plants etc. can be owned under private individuals and companies. The three things covered under this right are:
Every individual can acquire any amount of property, He can use these properties as he wishes, He also has the right of inheritance. So he can inherit the property from his forefathers. And he can also pass it on to his successors on his death.
Price Mechanism: Price mechanism is like an invisible hand that controls the workings of a capitalist economy. The forces of supply and demand will determine the prices and the level of productions in the economy. The government will not have any interference in this matter.
Profit Motive: The driving force behind any capitalist economy is the profit motive. All companies wish to produce and sell their products to maximize their profits. This also induces healthy competition in the economy.
Freedom of Enterprise: In capitalism, every individual is free to make his own economic choices without any intervention. This includes both the consumer and the producers.
So a producer is free to produce any goods or services. And the consumer is free to buy whatever he desires and from whomever, he wants without restrictions.
Right to Private Property: This is the essence of capitalism. This right means that private property such as property, factories, machines, plants etc. can be owned under private individuals and companies. The three things covered under this right are:
Every individual can acquire any amount of property, He can use these properties as he wishes, He also has the right of inheritance. So he can inherit the property from his forefathers. And he can also pass it on to his successors on his death.
Price Mechanism: Price mechanism is like an invisible hand that controls the workings of a capitalist economy. The forces of supply and demand will determine the prices and the level of productions in the economy. The government will not have any interference in this matter.
Profit Motive: The driving force behind any capitalist economy is the profit motive. All companies wish to produce and sell their products to maximize their profits. This also induces healthy competition in the economy.
Freedom of Enterprise: In capitalism, every individual is free to make his own economic choices without any intervention. This includes both the consumer and the producers.
So a producer is free to produce any goods or services. And the consumer is free to buy whatever he desires and from whomever, he wants without restrictions.
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Which of the following is not a feature of “capitalist economy&#...
Introduction:
A capitalist economy is characterized by private ownership of the means of production and the production and distribution of goods and services for profit. In this type of economy, various features distinguish it from other economic systems such as socialism or communism.
Explanation:
The correct answer is option B: A great part of the production is used for private consumption. This statement is not a feature of a capitalist economy. Let's understand each of the given options and why option B is not a characteristic of capitalism.
a) Ownership of means of production is with the private:
One of the key features of a capitalist economy is that the means of production, such as factories, land, and machinery, are owned and controlled by private individuals or entities. This allows individuals to have control over their own assets and make independent decisions regarding their use.
b) A great part of the production is used for private consumption:
In a capitalist economy, production is primarily driven by profit motive rather than individual consumption. While individuals do consume goods and services produced in a capitalist system, the primary goal is to sell these goods and services in the market and generate profit.
c) Labour services are purchased and sold at a price:
In a capitalist economy, labor is treated as a commodity that can be bought and sold at a price. Individuals offer their labor services in exchange for wages or salaries, and businesses purchase these services to carry out their production activities. The price of labor is determined by market forces, such as supply and demand.
d) Production takes place for selling the output in the market:
Another characteristic of a capitalist economy is that production is carried out with the intention of selling the output in the market. Businesses produce goods and services with the aim of generating profit by selling them to consumers or other businesses. Market competition plays a significant role in determining the prices and quantities of goods and services produced.
Conclusion:
In conclusion, a capitalist economy is characterized by private ownership of the means of production, production for the purpose of selling in the market, and the purchase and sale of labor services at a price. However, a great part of production being used for private consumption is not a feature of capitalism.
A capitalist economy is characterized by private ownership of the means of production and the production and distribution of goods and services for profit. In this type of economy, various features distinguish it from other economic systems such as socialism or communism.
Explanation:
The correct answer is option B: A great part of the production is used for private consumption. This statement is not a feature of a capitalist economy. Let's understand each of the given options and why option B is not a characteristic of capitalism.
a) Ownership of means of production is with the private:
One of the key features of a capitalist economy is that the means of production, such as factories, land, and machinery, are owned and controlled by private individuals or entities. This allows individuals to have control over their own assets and make independent decisions regarding their use.
b) A great part of the production is used for private consumption:
In a capitalist economy, production is primarily driven by profit motive rather than individual consumption. While individuals do consume goods and services produced in a capitalist system, the primary goal is to sell these goods and services in the market and generate profit.
c) Labour services are purchased and sold at a price:
In a capitalist economy, labor is treated as a commodity that can be bought and sold at a price. Individuals offer their labor services in exchange for wages or salaries, and businesses purchase these services to carry out their production activities. The price of labor is determined by market forces, such as supply and demand.
d) Production takes place for selling the output in the market:
Another characteristic of a capitalist economy is that production is carried out with the intention of selling the output in the market. Businesses produce goods and services with the aim of generating profit by selling them to consumers or other businesses. Market competition plays a significant role in determining the prices and quantities of goods and services produced.
Conclusion:
In conclusion, a capitalist economy is characterized by private ownership of the means of production, production for the purpose of selling in the market, and the purchase and sale of labor services at a price. However, a great part of production being used for private consumption is not a feature of capitalism.
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Which of the following is not a feature of “capitalist economy”?a)Ownership of means of production is with the privateb)A great part of the production is used for private consumptionc)Labour services are purchased and sold at a priced)Production takes place for selling the output in the marketCorrect answer is option 'B'. Can you explain this answer?
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Which of the following is not a feature of “capitalist economy”?a)Ownership of means of production is with the privateb)A great part of the production is used for private consumptionc)Labour services are purchased and sold at a priced)Production takes place for selling the output in the marketCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is not a feature of “capitalist economy”?a)Ownership of means of production is with the privateb)A great part of the production is used for private consumptionc)Labour services are purchased and sold at a priced)Production takes place for selling the output in the marketCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is not a feature of “capitalist economy”?a)Ownership of means of production is with the privateb)A great part of the production is used for private consumptionc)Labour services are purchased and sold at a priced)Production takes place for selling the output in the marketCorrect answer is option 'B'. Can you explain this answer?.
Which of the following is not a feature of “capitalist economy”?a)Ownership of means of production is with the privateb)A great part of the production is used for private consumptionc)Labour services are purchased and sold at a priced)Production takes place for selling the output in the marketCorrect answer is option 'B'. Can you explain this answer? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Which of the following is not a feature of “capitalist economy”?a)Ownership of means of production is with the privateb)A great part of the production is used for private consumptionc)Labour services are purchased and sold at a priced)Production takes place for selling the output in the marketCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following is not a feature of “capitalist economy”?a)Ownership of means of production is with the privateb)A great part of the production is used for private consumptionc)Labour services are purchased and sold at a priced)Production takes place for selling the output in the marketCorrect answer is option 'B'. Can you explain this answer?.
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