Advantages And Disadvantages of Capitalism - SS1 Economics Past Questions & 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
2

What is one disadvantage of capitalism?

A

Environmental degradation

 

 

 

B

Innovation

C

Economic stability

CORRECT OPTION: a
3

What is one characteristic of capitalism?

A

Centralized planning of production

 

 

B

Consumer sovereignty

C

Guaranteed social welfare

CORRECT OPTION: b
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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