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Question : 'Hire' and 'Fire' is the policy of:

Option 1: capitalism

Option 2: socialism

Option 3: mixed economy

Option 4: traditional economy


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: capitalism


Solution : The correct option is capitalism .

A capitalist economy follows the "hire to fire" premise. Unlike in a mixed economy, the government preserves workers' jobs, lowering employee turnover.

Employers can recruit and dismiss workers based on their business requirements, a key feature of capitalist economies. In a capitalist economy, the government often does not interfere with the labour market, allowing supply and demand to determine how to secure jobs for people.

Socialism and mixed-economy systems usually offer stronger job protections and regulate dismissal policies to some degree, whereas, in capitalism, employers can hire and fire freely based on the requirements.

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