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Question
Which of the following is NOT the feature of a capitalistic economy?
Options
High degree of competition
Economic planning
Freedom of consumption
Profit motive
MCQ
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Solution
Economic planning
Explanation:
A capitalistic economy is characterized by private ownership, profit motive, high degree of competition, and freedom of consumption. Economic planning, which involves centralized control and allocation of resources, is not a feature of capitalism but of a socialist or planned economy where the government makes decisions on production and distribution. In capitalism, decisions are driven by market forces and individual profit motives without central planning.
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