Question

Which statement about a capitalist economic system is true? A. In a capitalist economy, the government owns the means of production. B. The capitalist system encourages competition among businesses. C. Capitalism requires that all citizens be government employees, no matter what kind of work they do. D. In capitalist societies, people are not motivated to work hard since it will not affect their income or profits.

Answer 1

"B. The capitalist system encourages competition among businesses" is correct. Capitalism, although it definitely has flaws, encourages competition because in theory the person or company with the best idea makes the most money.

Answer 2

The correct option is B. It encourages the competition among businesses because it's an economy system based on private ownership of capital.