U.S. History STAAR ( State of Texas Assessments of Academic Readiness) Practice Test

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Study for the U.S. History STAAR Test. Engage with flashcards and multiple choice questions, each offering hints and explanations. Prepare effectively for your exam!

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Who are capitalists in economic terms?

Individuals who save and do not invest
Persons who invest money in business
Non-profit organization founders
Government employees managing public funds

The correct answer is: Persons who invest money in business

In economic terms, capitalists are individuals or entities that invest money in businesses with the expectation of generating profits. This investment can take various forms, including purchasing stock in a company, starting a new business, or financing existing enterprises. The essence of capitalism lies in the willingness of these individuals to risk their capital in the hopes that their investments will yield financial returns, allowing for economic growth and innovation. The other options do not accurately define capitalists. Saving without investing does not contribute to the growth of businesses or the economy, as it keeps money out of circulation. Non-profit organization founders focus on social goals rather than profit-making ventures, and government employees typically manage public funds for community services, rather than engaging in capital investment aimed at profit. Thus, the role of a capitalist distinctly involves actively investing in business ventures.