7. what are the effects of competition? 8. why is the principle of private property important for capitalism?

Brief Explanations:

For question 7, competition can drive innovation as firms strive to out - perform rivals, can lead to lower prices for consumers through price - wars, and can also result in more efficient production methods. For question 8, private property is crucial for capitalism as it provides incentives for individuals to invest, innovate and take risks, as they can own the fruits of their labor and property can be used as collateral for further economic activities.

Answer:

7. Competition can drive innovation, lower prices, and increase production efficiency.
8. Private property provides incentives for investment, innovation, and risk - taking and can be used as collateral.