Outline the major merits of capitalism.

1.	Outline the major merits of capitalism.
Answer» Merits of Capitalism 1. Automatic Working: Without any government intervention, the economy works automatically. 2. Efficient Use of Resources: All resources are put into optimum use. 3. Incentives for Hard work: Hard work is encouraged and entrepreneurs get more profit for more efficiency. 4. Economic Progress: Production and productivity levels are very high in capitalistic economies. 5. Consumers Sovereignty: All production activities are aimed at satisfying the consumers. 6. Higher Rates of Capital Formation: Increase in saving and investment leads to higher rates of capital formation. 7. Development of New Technology: As profit is aimed at, producers invest on new technology and produce quality goods.

Answer»

Merits of Capitalism

1. Automatic Working: Without any government intervention, the economy works automatically.

2. Efficient Use of Resources: All resources are put into optimum use.

3. Incentives for Hard work: Hard work is encouraged and entrepreneurs get more profit for more efficiency.

4. Economic Progress: Production and productivity levels are very high in capitalistic economies.

5. Consumers Sovereignty: All production activities are aimed at satisfying the consumers.

6. Higher Rates of Capital Formation: Increase in saving and investment leads to higher rates of capital formation.

7. Development of New Technology: As profit is aimed at, producers invest on new technology and produce quality goods.

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