which one of these are true?
In a capitalist economy:
a) one might a profit
b) one would pay no taxes
http://en.wikipedia.org/wiki/Capitalism
"...the component concepts used in defining capitalism — such as private ownership, markets and investment — have evolved along with changes in theory, in law, and in practice."
Let us know what you think, and someone here will be happy to comment on your ideas.
I know they are allowed to make a profit but at the same time a place like Singapore is capitalist and pays very little tax. I assume that both choices are somewhat correct. but it's a multiple choice question and i can only choose one so i don't know which one fits more
Think about this. If you own a business and don't have to pay high taxes, where will you put your profits? Into your business to make it even more successful? Or into your own pocket? Or both?
Based on my grandfather's experience as a small business owner in Nevada and California in the 1920s-1970s, capitalism thrives on low taxes so he could build his business. Higher taxes during the LBJ presidency took away money from his business, and he had to cut his business back, laying people off.
It's a balancing act. There need to be enough taxes to do what's needed in the government (whether federal or state or local), but business owners also need to be able to make enough money to support their families and their businesses, AND to "grow" their businesses.
In a capitalist economy, both options a) and b) can be true for individuals, although it depends on specific circumstances. Let's explain how to determine whether each statement is true or false:
a) One might make a profit: In a capitalist economy, individuals and businesses have the opportunity to generate profits. They can engage in entrepreneurship, investment, or owning and operating businesses that can generate income exceeding their expenses. To determine if this statement is true for a specific individual, you would need to assess their financial activities and whether they have generated profits.
b) One would pay no taxes: This statement is generally not true in a capitalist economy. Taxes are an essential component of funding public goods and services, such as infrastructure, education, healthcare, and defense. Individuals and businesses typically have to pay various taxes, such as income taxes, sales taxes, property taxes, or corporate taxes, depending on their income, assets, or consumption. Of course, tax laws and regulations can vary between countries, so it's essential to consult the specific tax laws applicable to your situation to determine the obligations.
To verify whether these statements are true or false, it's important to consider the broader context, individual circumstances, and applicable laws and regulations.