Which of the following is a characteristic of pure capitalism?
A)all resources are owned communally
B)economic activity is coordinated by government decision makers
C)the price system is used to guide resources to their highest-valued uses
D)centralized economic planning is used to answer the basic economic questions
E)individual choices are reflected only through collective decisions

Question

Quizplus · Accepted Answer

The price system is a key feature of pure capitalism, where the allocation of resources is determined by the forces of supply and demand in the market. This means that resources are guided to their highest-valued uses based on consumer preferences and the profitability of producing goods and services. The other options presented are not characteristic of pure capitalism, as they involve some level of government intervention or collective decision-making.

Which of the Following Is a Characteristic of Pure Capitalism