Which of the following is a feature of a capitalist economy?
A. Central planning of all economic activities
B. Collective ownership of resources
C. Private ownership of means of production and profit motive
D. Absence of market mechanism
Answer: Option C
Solution (By JKSSB Mock Tests)
A capitalist (market) economy is characterised by private ownership of the means of production, profit motive, and resource allocation through the market mechanism.
Explanation:
Sunk costs are irreversible costs that have already been incurred. Rational decision-making requires focusing on incremental future costs and benefits, ignoring sunk costs.
Explanation:
GST replaced multiple cascading taxes with a unified tax on the supply of goods and services, allowing input tax credit and involving both the Centre and the States.
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