Class 12 Macro Economics - Chapter Introduction to Macro Economics NCERT Solutions | What are the important features of a cap
What are the important features of a capitalist economy?
Capitalist economy is an economic system where the means of production are privately owned. These means of production are driven by the motive of profit making. This economic structure is also known as free market economy of laissez faire.
1. Role of the government
The government provides the basic framework for the smooth functioning of an economy. It provides the basic framework and is responsible for maintenance of law and order, justice, growth and stability, defence, etc.
2. Profit motive
The economic agents are driven by the prime motive of profit maximization.
3. Central problems
The central problems of an economy are solved by the market forces of demand and supply, i.e., the law of demand and supply operates here. The producers will supply only those goods and services that are demanded by the economy.
4. Role of private sector
The role of private individuals is more dominant. The main role of undertaking production and organising factors of production are played by the private individuals and capitalists.
5. Laissez-faire
This economy is called laissez faire. It has minimum interference or restriction from the government.
More Questions From Class 12 Macro Economics - Chapter Introduction to Macro Economics
Popular Questions of Class 12 Macro Economics
- Q:-
What is marginal propensity to consume? How is it related to marginal propensity to save?
- Q:-
Explain why public goods must be provided by the government.
- Q:-
Differentiate between balance of trade and current account balance.
- Q:-
What are the four factors of production and what are the remunerations to each of these called?
- Q:-
What is a barter system? What are its drawbacks?
- Q:-
What is the difference between ex ante investment and ex post investment?
- Q:-
Distinguish between revenue expenditure and capital expenditure.
- Q:-
What are official reserve transactions? Explain their importance in the balance of payments.
- Q:-
Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.
- Q:-
What are the main functions of money? How does money overcome the shortcomings of a barter system?
Recently Viewed Questions of Class 12 Macro Economics
- Q:-
What are the main functions of money? How does money overcome the shortcomings of a barter system?
- Q:-
What is the difference between planned and unplanned inventory accumulation? Write down the relation between change in inventories and value added of a firm.
- Q:-
In the above question, calculate the effect on output of a 10 per cent increase in transfers, and a 10 per cent increase in lump-sum taxes. Compare the effects of the two.
- Q:-
What are the alternative definitions of money supply in India?
- Q:-
Differentiate between devaluation and depreciation.
- Q:-
What is the difference between ex ante investment and ex post investment?
- Q:-
Why should the aggregate final expenditure of an economy be equal to the aggregate factor payments? Explain.
- Q:-
Distinguish between stock and flow. Between net investment and capital which is a stock and which is a flow? Compare net investment and capital with flow of water into a tank.
- Q:-
What do you understand by ‘parametric shift of a line’? How does a line shift when its (i) slope decreases, and (ii) its intercept increases?
- Q:-
The value of the nominal GNP of an economy was Rs 2,500 crores in a particular year. The value of GNP of that country during the same year, evaluated at the prices of same base year, was Rs 3,000 crores. Calculate the value of the GNP deflator of the year in percentage terms. Has the price level risen between the base year and the year under consideration?
- All Chapters Of Class 12 Macro Economics
- All Subjects Of Class 12