Capitalism - SS1 Government Past Questions and Answers - page 1

1

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

A

The government

B

Private individuals or companies

C

Religious institutions

correct option: b

Private individuals or companies

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2

What determines prices in a capitalist system?

A

Government regulations

B

Consumer preferences

C

Political leaders

correct option: b

Consumer preferences

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3

What does capitalism encourage?

A

Collaboration

B

Competition

C

A centralized economy

correct option: b

Competition

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4

What are some drawbacks of capitalism?

A

Income equality and environmental sustainability

B

Government control and social welfare

C

Resource abundance and low unemployment

correct option: a

Income equality and environmental sustainability

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5

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

A

Regulation

B

 Innovation

C

Monopoly

correct option: b

 Innovation

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6

What is the main goal of capitalism?

The main goal of capitalism is to generate profit for private individuals or companies.

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7

What are some potential negative effects of capitalism?

Some potential negative effects of capitalism include income inequality, environmental degradation, and social unrest.

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