Which of the following was a positive effect of capitalism

Answer

The positive effects of capitalism are;

•Economic  freedom that helps political freedom

•Firms acquire incentives to be efficient and produce goods

•Consumers are free to choose products according to their desires

•There is reduced bureaucratic in the government

Explanation

Capitalism is system in economy where there is lack of government intervention and the means of production is owned by private firms. The government does not control prices thus the goods and services distribution is based on price mechanism. In capitalism, people own private properties and have the right to gain wealth and compete in the market. Due to this competition, the industries responsible end up producing high quality goods. In this economic system, a person can earn money according to the importance of their role in the society. Through this system, people are encouraged to contribute to the economy thus in the process gain wealth and promote wealth for others too.

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