If the United States government were to regulate its financial structures, including banks and businesses, which of the followin
g criteria of a capitalist economy would it violate? A. Consumer interests affect capitalism. B. Prices and wages are set by supply and demand. C. Privately owned resources are used to make a profit. D. Government involvement in businesses and markets must be limited.If the United States government were to regulate its financial structures, including banks and businesses, which of the following criteria of a capitalist economy would it violate? A. Consumer interests affect capitalism. B. Prices and wages are set by supply and demand. C. Privately owned resources are used to make a profit. D. Government involvement in businesses and markets must be limited.
Capitalism is a political philosophy that believes in "laissez-faire" economy. This means that the government should abstain from getting involved in businesses. These entities should always be run by private parties who search to be profitable by operating them. Government involvement will probably end up in subsidies that aim to aid ineffective participants in the market. This is proven to harm the economy in the middle term, these sectors won't be able to thrive against foreign competition.
A pure market economy, or capitalist economic system is characterized by zero goverment intervention in the economy. Instead, markets are allowed to freely fluctuate, and the interactions between the economic agents (households, firms and public sector) determine the prices and the output in both product and factor markets.
Therefore, if <u>the US authorities intend to control banks and businesses, such action is violating the "zero interventionism" principle and the </u><u><em>laissez-faire</em></u><u> approach</u>, hence the main criteria of capitalism.
The protection of the Monroe Doctrine and Open Door Policy from German and Japanese expansion into the Pacific and Asia
Explanation
The Senate that was mainly republican wanted to protect the Monroe Doctrine and the “open door” policy and refused to interfere more in the European affairs.
At first the German government encouraged Jews to emigrate and placed a few restrictions on what they could take. Gradually, the Nazis sought to deprive Jews fleeing Germany of their property by levying an increasing heavy emigration tax and by restricting the amount of money that could be transferred aboard the German banks.
