Economics Assignment: Pure Capitalism, GDP and Non-Profit Organizations in Canada

Running head: ECONOMICS ASSIGNMENT
Economics Assignment
Name of the Student
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Author Note

1ECONOMICS ASSIGNMENT
Table of Contents
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................3
References..................................................................................................................................5

2ECONOMICS ASSIGNMENT
Answer 1
The capitalist form of market structure is one of the most eminent and widely
observed form of economic framework, where the productive resources and capital goods are
all owned by the private businesses and individuals and they utilize these scarce resources to
produce different commodities and services based on the demand and supply existing in the
free market. In this context, the concept of “Pure Capitalism” indicates towards the form of
capitalism in an absolutely free market or laissez-faire system of capitalism, where there
remains no constraint on the individuals in the aspect of where they can invest and their
choices of product and services which they want to provide and also the price levels at which
they decide to provide the same (Przeworski, 2014). Evidently, this in this form of free
market economy, individuals produce with the sole incentive of profit maximization.
Keeping this into consideration, if Canada becomes a Pure Capitalist economy, then
the owners of the resources will work with the incentive of maximizing profit. Given this
situation, more eligible working population will shift from being volunteers in non-profit
organizations to being paid workers in these lucrative profit-maximizing Capitalist
organizations. This will primarily happen because of presence of financial incentives in the
profit-oriented organizations in the Capitalistic Framework of the economy (Drucker, 2013).
Thus, the number of the volunteers in these non-profit organizations are expected to decrease
in the capitalistic construct in Canada, which in turn is expected to have considerable
negative implications on the non-profit organizations as they mostly rely on the efforts of
their volunteers than that of paid workers for their activities.
Answer 2
In the economic framework, the Gross Domestic Product of a country for a particular
period is measured by summing up the values of all the goods and services which are