What Do You Know About Capitalism? Trivia Quiz
In the capitalist economy, the private ownership of businesses is allowed. The business refers to the means of production needed to make optimum profit. An advantage of this is healthy competition between businesses to the delight of the citizens. Most of the liberal countries of the world adopts the capitalist system. Do you know them?
- 1.
What is the hallmark of capitalism?
- A.
Competition
- B.
Private ownership
- C.
Trade for profit
- D.
Voluntary exchange
Correct Answer
B. Private ownershipExplanation
Private ownership is the hallmark of capitalism because it allows individuals and businesses to own and control property, resources, and means of production. In a capitalist system, individuals have the right to own and use their property as they see fit, without interference from the government. This ownership enables individuals to make decisions about how to allocate resources and pursue their own self-interests, which in turn drives competition, trade for profit, and voluntary exchange. Without private ownership, capitalism cannot function effectively as it relies on the incentives and motivations provided by individual ownership rights.Rate this question:
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- 2.
Which of these is not a characteristic of capitalism?
- A.
Price system
- B.
Private ownership
- C.
Accumulation of capital
- D.
Monopoly
Correct Answer
D. MonopolyExplanation
Monopoly is not a characteristic of capitalism because capitalism promotes competition and free market principles. In a capitalist system, multiple businesses and individuals have the opportunity to own and operate their own businesses, leading to a diverse marketplace. Monopoly, on the other hand, refers to a situation where a single entity or company has exclusive control over a particular market, limiting competition and potentially leading to higher prices and reduced choices for consumers.Rate this question:
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- 3.
Which of these is a not a type of capitalism?
- A.
Welfare capitalism
- B.
Free market
- C.
Sole capitalism
- D.
State capitalism
Correct Answer
C. Sole capitalismExplanation
Sole capitalism is not a type of capitalism because it does not exist as a recognized form of economic system. The term "sole capitalism" is not commonly used or defined in economic literature or theory. It is likely a made-up term or a misinterpretation of another concept. Welfare capitalism, free market capitalism, and state capitalism, on the other hand, are all recognized types of capitalism with distinct characteristics and features.Rate this question:
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- 4.
Which of these is not a model of capitalism?
- A.
Degree of competition
- B.
Scope of state ownership
- C.
Variance of brokers
- D.
Role of intervention
Correct Answer
C. Variance of brokersExplanation
The correct answer is "Variance of brokers". This is because the variance of brokers does not relate to the different models of capitalism. The degree of competition, scope of state ownership, and role of intervention are all factors that can vary in different models of capitalism, but the variance of brokers is not a recognized factor in determining different models of capitalism.Rate this question:
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- 5.
Which of these countries does not practice capitalism?
- A.
France
- B.
United States
- C.
Russia
- D.
United Kingdom
Correct Answer
C. RussiaExplanation
Russia is the correct answer because it does not practice capitalism. While France, the United States, and the United Kingdom are all capitalist countries, Russia operates under a mixed economic system with elements of both capitalism and socialism. The Russian government exerts significant control over key industries and sectors, and there is a high level of state intervention in the economy. This differs from the free-market principles and private ownership that characterize capitalism.Rate this question:
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- 6.
Which of these is not an element of market competition in capitalism?
- A.
Promotion
- B.
Price
- C.
Monopoly
- D.
Distribution
Correct Answer
C. MonopolyExplanation
Monopoly is not an element of market competition in capitalism because it refers to a situation where there is only one seller or producer in the market, giving them complete control over the supply and pricing of a product or service. In a competitive market, there are multiple sellers and producers, each vying for customers and offering different prices, promotions, and distribution strategies to gain a competitive edge. Monopoly eliminates competition and restricts consumer choice, which goes against the principles of market competition in capitalism.Rate this question:
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- 7.
What is the desire to earn income in form of profit called?
- A.
Profit motive
- B.
Competition
- C.
Price control
- D.
Monopoly
Correct Answer
A. Profit motiveExplanation
Profit motive refers to the desire or motivation of individuals or businesses to earn income in the form of profit. It is the driving force behind entrepreneurial activities and economic growth. The profit motive incentivizes individuals to take risks, invest in new ventures, and innovate in order to maximize their profits. It is a fundamental aspect of capitalism and free market economies, as it encourages competition and efficiency in the allocation of resources.Rate this question:
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- 8.
Which of these economists described capitalism?
- A.
Adam Smith
- B.
Lord Robbins
- C.
Martin Hooke
- D.
Alfred Marshal
Correct Answer
A. Adam SmithExplanation
Adam Smith is the correct answer because he is widely regarded as the father of modern economics and his book "The Wealth of Nations" is considered one of the most influential works on capitalism. Smith's ideas on free markets, division of labor, and self-interest laid the foundation for the concept of capitalism as an economic system based on private ownership, competition, and the pursuit of individual profit. Lord Robbins, Martin Hooke, and Alfred Marshal are not known for their contributions to the study of capitalism.Rate this question:
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- 9.
How can a capitalist economy not be assessed?
- A.
Grade point average
- B.
Capacity utilization
- C.
Standard of living
- D.
By gross domestic average
Correct Answer
A. Grade point averageExplanation
A capitalist economy cannot be assessed using a grade point average because a grade point average is a measure of academic performance and does not provide information about the overall functioning and performance of an economy. Assessing a capitalist economy requires considering factors such as economic growth, employment rates, income distribution, productivity, and market efficiency, which cannot be captured by a grade point average.Rate this question:
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- 10.
Which of these is not associated with demand and supply in capitalism?
- A.
Price
- B.
Surplus
- C.
Monopoly
- D.
Shortage
Correct Answer
C. MonopolyExplanation
Monopoly is not associated with demand and supply in capitalism because it refers to a situation where there is only one seller in the market, controlling the supply of a particular good or service. In a monopoly, the seller has the power to set prices and restrict the quantity supplied, leading to a lack of competition and market inefficiencies. Demand and supply in capitalism are based on the interaction of multiple buyers and sellers, where prices are determined by the forces of supply and demand in a competitive market.Rate this question:
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Aug 29, 2024Quiz Edited by
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Jun 06, 2019Quiz Created by
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