Question

Which are characteristics that make up capitalism? (Select all that apply.)

A. Government control

B. Freedom

C. Equality

D. Competition

Answer 1

Capitalism is an economic system characterized by economic freedom, competition, and voluntary exchange.

Step-by-step explanation:

Capitalism is an economic system in which the means of producing and distributing goods are privately owned. The main characteristics of capitalism include:

1. Economic freedom: Individuals have the freedom to enter into or leave the market, make decisions based on their own self-interest, and own and control their possessions.
2. Competition: There is competition among sellers to attract and keep customers, which helps keep prices low for consumers.
3. Voluntary exchange: Both buyers and sellers have the freedom to enter into the marketplace for buying or selling products.

In capitalism, government control, equality, and government interference in the marketplace are not characteristics of the system.