In a capitalist society the goods produced are distributed among people ______.

Question

Question

This question was previously asked in

SSC GD Constable (2024) Official Paper (Held On: 21 Feb, 2024 Shift 4)

Answer 1

The correct answer is not on the basis of what people need but on the basis of Purchasing Power

Key Points

In a capitalist society, goods are distributed not on the basis of what people need but on the basis of Purchasing Power.
Purchasing Power refers to the financial ability of individuals to buy goods and services.
This system often leads to inequalities where those with higher purchasing power can afford more goods and services, while those with less purchasing power may struggle to meet their basic needs.
The principle of distribution based on purchasing power is fundamental to the functioning of a capitalist economy.

Additional Information

Capitalism is an economic system where private individuals or businesses own capital goods.
The production of goods and services is based on supply and demand in the general market (market economy), rather than through central planning (planned economy or command economy).
In capitalist economies, the prices of goods and services are determined in a free price system set by supply and demand.
Key characteristics of capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system, and competitive markets.
Critics of capitalism argue that it can lead to economic inequality, exploitation, and social injustice.