Which of the Following Best Describes the Term Capitalism

question 25

Multiple Choice

Which of the following best describes the term capitalism?

• A) It is a set of political beliefs that include the advocacy of active government.
• B) It is a concept that holds, at a minimum, that all people are entitled to equal protection under the law.
• C) It is an economic system based on the private ownership of wealth-producing property.
• D) It is a more popular term for the set of political beliefs known as liberalism.
• E) It is an intrinsic property which measures the disregard for material possessions.

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Definitions:

Direct Materials

Raw materials that can be directly associated with the production of specific goods or services and are included in the cost of the finished product.

Fixed Overhead

The total of all costs that do not vary with production volume, including salaries, rent, and insurance.

Variable Overhead

Costs that fluctuate with production volume, such as utilities and indirect materials, which are not constant like fixed overhead costs.

Direct Labor

Labor costs directly attributable to the production of goods, including wages of workers who are actively involved in the manufacturing process.