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Profit motive is a merit of 1 Socialism 2 Capitalism 3 Mixed economy 4 None of the above?
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Profit motive is a merit of 1 Socialism 2 Capitalism 3 Mixed economy 4...
Capitalism

  • Profit motive is a key characteristic of capitalism.

  • The main goal of businesses in a capitalist system is to make a profit.

  • Individuals and businesses are free to pursue their own interests and make their own decisions in a competitive marketplace.

  • The profit motive drives innovation and efficiency, as businesses seek to create new products and services, improve existing ones, and cut costs in order to maximize profits.



Socialism

  • Profit motive is not a characteristic of socialism.

  • In a socialist system, the means of production are owned and controlled by the state or by the workers themselves.

  • The goal of production is not to make a profit, but to meet the needs of the people.

  • Prices and wages are often set by the state, rather than determined by the market.



Mixed Economy

  • A mixed economy combines elements of capitalism and socialism, and can have varying degrees of profit motive.

  • In a mixed economy, the government may regulate certain industries or provide social services, while still allowing for private enterprise and competition in other sectors.

  • Some mixed economies prioritize profit, while others prioritize social welfare and environmental concerns.



Conclusion

  • Profit motive is a key characteristic of capitalism, but is not necessarily present in socialist or mixed economies.

  • The role of profit in an economy can have significant implications for the distribution of wealth and the allocation of resources.

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Profit motive is a merit of 1 Socialism 2 Capitalism 3 Mixed economy 4...
4. None of the above
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Profit motive is a merit of 1 Socialism 2 Capitalism 3 Mixed economy 4 None of the above?
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