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Capitalism is usually characterized by all of the following except:a. private...

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studyguide34 | Student | eNotes Newbie

Posted April 5, 2010 at 3:08 AM via web

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Capitalism is usually characterized by all of the following except:

a. private ownership

b. upward social mobility

c. the dynamics

d. government ownership of industry

e. private investment in small and large businesses

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pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted April 5, 2010 at 3:12 AM (Answer #1)

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One strategy for answering questions like this is to look for answers that contradict each other.  Once you find such answers, one of them has to be the right one because they can't both be true.

In this question, A and D cannot really both be true.  Either the government owns industries, or people do.

In pure capitalism, industries are owned by the people, not by government.  This means that D is the correct answer -- this does not usually characterize capitalism.

Of course, our US government owns some industries -- like the Post Office or (in my county) the electric company.  But that's because we're not a pure capitalist economy.

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krishna-agrawala | College Teacher | (Level 3) Valedictorian

Posted April 5, 2010 at 12:19 PM (Answer #2)

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Capitalism is characterized by all of the given options except the option d, which is "government ownership of industry". Please not that this option is, in a way, opposite of option a, that is private ownership.

Capitalism an economic system followed by a country or a society which is characterized by private ownership and control of capital or means of production. As industry represents a means of production involving investment of capital, In capitalism the industry is owned and managed by individuals or groups of individuals in the society, rather than collectively by the total society represented by the government.

Pleas not the difference between ownership by the people, and private ownership. Ownership by people includes collective ownership by all the people. However private ownership means ownership by individuals or small group of people, rather than collectively by the entire population.

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