Which economic system is defined by private citizens owning the businesses?

Which economic system is defined by private citizens owning the businesses?

• A. Capitalism
• B. Communism
• C. Socialism
• D. Feudalism

Answer: (A)

Private ownership of the means of production is a defining feature of capitalism. In this system, individuals and private companies own resources and businesses, decide what to produce, how to produce it, and for whom, and operate within competitive markets guided by prices. The drive for profit and voluntary exchanges fuels investment, innovation, and growth, with the government’s role typically limited to enforcing laws and contracts. This description lines up most closely with capitalism. By contrast, communism centers on state ownership of production and centralized planning; socialism emphasizes public or collective ownership and redistribution, and feudalism rests on land owned by a noble class with peasants working it under obligations.

Private ownership of the means of production is a defining feature of capitalism. In this system, individuals and private companies own resources and businesses, decide what to produce, how to produce it, and for whom, and operate within competitive markets guided by prices. The drive for profit and voluntary exchanges fuels investment, innovation, and growth, with the government’s role typically limited to enforcing laws and contracts. This description lines up most closely with capitalism. By contrast, communism centers on state ownership of production and centralized planning; socialism emphasizes public or collective ownership and redistribution, and feudalism rests on land owned by a noble class with peasants working it under obligations.