Which economic system is based on private ownership of the means of production?

Which economic system is based on private ownership of the means of production?

• A. Culture of poverty
• B. Racism
• C. Capitalism
• D. Social exclusion

Answer: (C)

Private ownership of the means of production is the defining idea being tested. In capitalism, individuals or private firms own land, factories, and other productive resources, and they decide how to use them, guided by market competition and the pursuit of profit. This ownership and market-driven decision-making set capitalism apart from other concepts that describe social issues rather than a particular economic system. The other terms refer to social patterns or barriers, not to who owns productive resources. So, the system defined by private ownership of the means of production is capitalism.

Private ownership of the means of production is the defining idea being tested. In capitalism, individuals or private firms own land, factories, and other productive resources, and they decide how to use them, guided by market competition and the pursuit of profit. This ownership and market-driven decision-making set capitalism apart from other concepts that describe social issues rather than a particular economic system. The other terms refer to social patterns or barriers, not to who owns productive resources. So, the system defined by private ownership of the means of production is capitalism.