Capitalism - SS1 Government Past Questions and Answers - page 1

1

Who owns and controls the means of production in a capitalist system?

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A

The government

B

Private individuals or companies

C

Religious institutions

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2

What determines prices in a capitalist system?

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A

Government regulations

B

Consumer preferences

C

Political leaders

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3

What does capitalism encourage?

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A

Collaboration

B

Competition

C

A centralized economy

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4

What are some drawbacks of capitalism?

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A

Income equality and environmental sustainability

B

Government control and social welfare

C

Resource abundance and low unemployment

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5

Which of the following can lead to economic growth and development in capitalism?

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A

Regulation

B

 Innovation

C

Monopoly

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6

What is the main goal of capitalism?

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7

What are some potential negative effects of capitalism?

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