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Which of the following statements is true in a capitalist economy?

Select one:
a. Governments make major economic decisions and tell individual actors how to contribute to the economy. (Incorrect)

b. Markets motivate individual actors to make economic decisions.


c. Individuals are not encouraged to innovate because innovation hurts the economy. (INCORRECT)

d. Government pays individuals who develop the best innovations.

2 Answers

6 votes

Answer B but wat up shawty u bad

Step-by-step explanation:

User Felix Marianayagam
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The answer is: b. Markets motivate individual actors to make economic decisions.

In a capitalist economy, the government has very little influence to intervene in the economy. The market is solely controlled by the power of supply and demand. When a lot of people demanded a certain type of products, people who will gain the most profit would be those who are bale to make economic decisions to fulfill the demand in the market.

User Prashantsahni
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5.8k points