Question

A country has a capitalist economy. Which of the following statements applies to it?

A. Companies compete with each other for business.
B. Employees are told what jobs they will be allowed to perform.
C. The government owns and controls all major industries.
D. The government distributes food and clothing to citizens equally

Answer 1

A. Companies compete with each other for business

All of the other answers can be safely eliminated since they are more characteristic of a socialist economy. Answer choice A also makes sense, considering that private companies in capitalist countries like the United States compete with each other for business all the time.