Question

What is the key feature of capitalism as an economic system?

Options

• Private ownership; market-driven decisions

• Democratic planning through a central commission

• State ownership; planned resource allocation

• Combination of both public and private sectors

Answer 1

Capitalism is defined by private ownership of resources, with decisions driven by the market. This contrasts with socialism (state ownership with planned resource allocation) and the mixed economy (combination of both public and private sectors).