Which statement(s) most directly apply to capitalism?

1. 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. ll only
c. I and III
d. Ill only

Answers

Answer 1

Answer:

The answer is D, lll only.

Step-by-step explanation:

Just took the test on e d g e!

Answer 2

The statement that most directly applies to capitalism is III only.

Option D is the correct answer.

What is capitalism?

It is a system of the economy where means of production and distribution are owned by the private, not the government.

We have,

The economic system of capitalism is characterized by private ownership of the means of production and distribution of goods and services, as well as the profit motive as the driving force behind economic activity.

Based on this definition, statement III most directly applies to capitalism, as it highlights the central role of market forces in determining prices and availability of goods.

On the other hand,

Statement I, which suggests heavy government regulation of the industry, is not a typical feature of capitalism, as it implies a more interventionist approach by the government in the economy.

Capitalism generally favors a more limited role for the government in economic affairs, although some government regulations may still be present.

Statement II, which suggests that individuals can start some, but not all, kinds of enterprises, is also not a defining characteristic of capitalism.

In a capitalist system, individuals are generally free to start any kind of enterprise that they wish, provided they can obtain the necessary resources and meet any legal or regulatory requirements.

Therefore,

The statement that most directly applies to capitalism is III only.

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