4
QuizMultiple Choice

World Economics

Question 4 • T1 - 4 RMA-TX-Financial Math-B

Which statement(s) most directly apply to capitalism?I. There is heavy government regulation of industry.II. Individuals can start some, but not all, kinds of enterprises.III. The price and availability of goods is determined primarily by the market.

Answer
A
I and II
B
II only
C
I and III
D
III only

Explanation

In capitalism, prices and the availability of goods are determined primarily by supply and demand in the market, so statement III applies. Heavy government regulation is not a defining feature of capitalism, and statement II describes possible limits on private enterprise rather than a core feature. Therefore, the best choice is “III only.”

AI-written and checked against the verified answer.

Previous
Next