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In: Economics

Which of the followings is NOT a principle of capitalist economy? A. private ownership of the...

Which of the followings is NOT a principle of capitalist economy?

A. private ownership of the means of production.

B. markets for labor.

C. markets for exchange.

D. welfare system.

Solutions

Expert Solution

Ans: (D) Welfare System

The main principles and characteristics of capitalism includes capital accumulation, private property, wages for labors and workers, means and platforms of voluntary exchange , free flowing price systems and establishment of competitive markets that aim at generating profits. Out of all these foundation principles that establish a capitalistic market structure, welfare system does not hold a place in part of its foundation concepts.

But, in recent times , welfare systems gain a lot of importance from governments that authorize a capitalistic market structure. To ensure safety of the interests of market consumers as well as to protect the interest of the impoverished, welfare systems in markets are necessary to prevent exploitation and to establish a safe, secure and fair market structure.

Rahul Sunny answered 1 year ago
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