Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsIndian Economy 1950-19904 Marks
Question
What are the features of a capitalist economy?
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Answer
Features of a capitalist economy:
Private ownership of factors of production..
Profit is the motive for production.
Economic decisions depend upon the market forces of demand and supply, and the consumer is sovereign.
Only those goods are produced which are in demand. Thus, this type of economic system neglects the poor, who do not constitute the demand, since they lack the purchasing power.
It is also called "free market economy", since government does not interfere in the economic decisions.
For example: USA, UK, Germany, France.
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