Question

5 which of the following includes characteristics of capitalism?

a. freedom of competition, market economy, supply and demand.

b. limited competition, government run economy.

c. no competition, substance economy, supply - based on production capability.

d. no competition, subsistence economy, supply and demand.

Explanation:

To determine the characteristics of capitalism, we analyze each option:

• Option A: Capitalism is characterized by a free - market economy where there is freedom of competition, and the market is driven by supply and demand. In a capitalist system, businesses compete freely, and the prices and production levels are determined by the interaction of supply (the quantity of goods or services available) and demand (the quantity of goods or services that consumers are willing to buy).
• Option B: A government - run economy with limited competition is more characteristic of a socialist or communist economic system, not capitalism. In capitalism, the government's role in the economy is relatively limited compared to a government - run economy.
• Option C: The idea of "no competition" and a "substance economy" (a term not associated with capitalism) and supply based on production capability rather than market forces goes against the principles of capitalism. Capitalism is driven by market forces of supply and demand, not just production capability.
• Option D: "No competition" and a "subsistence economy" (an economy where people produce just enough to survive, not a capitalist concept) are not characteristics of capitalism. Capitalism thrives on competition and a market - based economy, not a subsistence - based one.

Answer:

A. freedom of competition, market economy, supply and demand