Advertisements
Advertisements
Question
Who determines prices in a capitalist economy?
Options
Government
Big corporates
Market forces
None of these
MCQ
Advertisements
Solution
Market forces
Explanation:
In a capitalist economy, prices are determined by market forces of supply and demand rather than by the government or big corporates. The market mechanism allows for allocation of resources and price determination based on consumer demand and producer’s supply. This is a fundamental feature of capitalism where the price mechanism acts as an “invisible hand” coordinating economic decisions independently.
shaalaa.com
Is there an error in this question or solution?
