Question 1
With which one of the following ideas or institutions is capitalism associated?
- A.Serfdom
- B.Equality of classes
- C.Controlled markets
- D.Making profit
Show the answer and explanation
Answer: D Making profit
Why
Capitalism rests on private ownership of the means of production, and the owner puts money into business in order to come out with more money. Profit is the motive that drives the whole system.
Serfdom belongs to feudalism, the order capitalism replaced. Controlled markets describe a command economy, and capitalism does not promise equality of classes.
Textbook: History Grade 12, Unit 1 Development of Capitalism and Nationalism from 1815 to 1914, section 1.1 Development of Capitalism (page 2).