Economics · Features of Capitalist Economy
Consider the following statements regarding the functional dynamics of a Capitalist Economy: Statement I: In a capitalist economy, the 'Profit Motive' acts as the primary incentive for producers to innovate and improve the quality of their goods. Statement II: 'Consumer Sovereignty' implies that the government dictates what goods should be produced based on its assessment of national interest. Statement III: The existence of 'Competition' among sellers prevents any single firm from exploiting consumers by charging excessively high prices indefinitely. Which of the following assessments is correct?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Only I
- 2Only I and III✓
- 3Only II and III
- 4I, II and III
Correct answer
Only I and III
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