Capitalism is founded on ______.
A) the social changes that followed the Industrial Revolution
B) the idea that 80 percent of the nation's wealth should be owned by no more than 20 percent of the people
C) the idea that the government must own all factors of production
D) the belief that competition among business firms best serves the needs of society

Question

Quizplus · Accepted Answer

Capitalism is founded on the belief that competition among business firms best serves the needs of society. This means that businesses are free to compete with one another within a market, leading to innovation and efficiency, ultimately benefiting consumers. The government does not own all factors of production in a capitalist system. The 80/20 wealth distribution mentioned in choice B is not a founding principle of capitalism, but rather a statistic related to income inequality. The social changes following the Industrial Revolution may have contributed to the growth of capitalism, but they are not its foundational principle.

Capitalism Is Founded on ______