Question

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.
a. i and ii
b. ii only
c. i and iii
d. iii only
please select the best answer from the choices provided a b c d

Answer 1

In capitalism, the market primarily determines the price and availability of goods, aligning with a market-oriented economy that minimizes government intervention. Therefore, the correct answer is d. iii only.

Step-by-step explanation:

The statement(s) that most directly apply to capitalism are that the price and availability of goods is determined primarily by the market. This directly aligns with the concept of a market-oriented economy, which has fewer regulations and allows for the forces of supply and demand to dictate market conditions. While it is true that the United States, a capitalist country, does have significant government influence on private companies through regulations and government control over certain industries, the essence of capitalism is reflected in the market determining the economic outcomes with minimal government intervention on what to produce and the prices to charge. Thus, the correct answer would be d. iii only.