Which Statement Best Describes Capitalism

question 34

Multiple Choice

Which statement best describes capitalism?

• A) Capitalism is an economic system in which the means of production and distribution is in state hands.
• B) Capitalism is an economic system that operates under the profit motive.
• C) Capitalism is an economic system that dispenses with competition.
• D) Capitalism is an economic system where the profits generated belong to the state as a whole.

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Definitions:

Direct Materials

Raw materials that are directly incorporated into a finished product and are easily traceable to the product.

Direct Materials

Core ingredients that are directly associated with the assembly of specific items or delivery of services.

Conversion Costs

The combined costs of direct labor and manufacturing overheads incurred to convert raw materials into finished products.

Completion Ratios

The percentage of tasks or projects completed out of the total planned, often used as a performance indicator in project management.