Capitalism Flashcards
1
Q
Capitalism
A
Lack of government intervention
Means of production owned by private firms
2
Q
Benefits of capitalism
A
Incentives to be rich
Encourages innovation
Incentives to be efficient
Consumers free to choose products they desire
Jobs
3
Q
Problems with capitalism
A
Can gain monopoly power
Firms with monopsony power can pay low wages
Leads to inequality
