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Advantages And Disadvantages of Capitalism - SS1 Economics Past Questions and Answers - page 1

1

What is one advantage of capitalism?

A

Guaranteed access to basic necessities

 

 

 

B

Wealth equality

C

Economic efficiency

correct option: c
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2

What is one disadvantage of capitalism?

A

Environmental degradation

 

 

 

B

Innovation

C

Economic stability

correct option: a
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3

What is one characteristic of capitalism?

A

Centralized planning of production

 

 

B

Consumer sovereignty

C

Guaranteed social welfare

correct option: b
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4

How does capitalism promote economic efficiency?

 

 

Capitalism promotes competition and efficiency, which results in lower prices for goods and services and an overall increase in economic productivity.

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