Which of the following are true?
a) In a country where income disparity i.e. gap in income between rich and poor people is large, it is good to have a capitalist economy.
b) In a capitalist economy government takes the responsibility of providing necessary goods and services to people.
Answer & explanation
Correct answer: option 4
In a capitalist economy government does not play a role in providing necessary goods and services to people thus its not a suitable system for a country with large income disparity. Adopting capitalistic principles will lead to increase in income disparity.