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Economics miscellaneous

  1. In a Capitalistic Economy, the prices are determined by :
    1. Demand and Supply
    2. Government Authorities
    3. Buyers in the Market
    4. Sellers in the Market
Correct Option: A

Capitalism generally refers to economic system in which the means of production are largely or entirely privately owned and operated for a profit, structured on the process of capital accumulation. In general, investments, distribution, income, and pricing is determined by markets. In capitalism, prices are decided by the demand-supply scale. For example, higher demand for certain goods and services lead to higher prices and lower demand for certain goods lead to lower prices.



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