Q. Which of the following are the characteristics of a capitalist economy?
1.Private ownership of means of production
2.Production takes place for selling the output in the market
3.There is sale and purchase of labour services
Choose the correct answer from below given codes:
Explanation: A capitalist economy can be defined as an economy in which most of the economic activities have the following characteristics
(a) There is private ownership of means of production
(b) Production takes place for selling the output in the market
(c) There is sale and purchase of labour services at a price which is called the wage rate (the labour which is sold and purchased against wages is referred to as wage labour).
Source: NCERT – Macro economics