Question

If a country espouses the principles of capitalism, but does allow the government to pass legislation that regulates

some business practices, then the country is practicing

modified capitalism.
pure capitalism
laissez-faire capitalism.
free-
market capitalism.

Answer 1

modified capitalism.

Step-by-step explanation:

Capitalism is defined as an economic and political structure where factors of production are controlled by private individuals aimed at gaining profit. The state does not have control of trade and industry.

However in modified capitalism the government has some level of control which they exercise by regulating business activities to some extent.

On the other hand in pure capitalism all decisions related to trade and industry are determined by only private entities