Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Introduction

Question:

Which of the following is a "Feature" of a capitalist economy?

Options:

Main motive is profit maximization

Private ownership of capital and land

Both 1 and 2

Neither 1 nor 2

Correct Answer:

Both 1 and 2

Explanation:

The correct answer is option 3: Both 1 and 2

Both statements are features of a capitalist economy:

  1. Main motive is profit maximization: In a capitalist economy, businesses aim to maximize profits, which drives innovation and efficiency.

  2. Private ownership of capital and land: Capitalist economies are characterized by private ownership of production resources, including land and capital, allowing individuals and businesses to operate freely in the market.