How is capitalism described in the material?

How is capitalism described in the material?

• A. Government ownership of all resources and central planning.
• B. Free market with privately owned businesses competing; price determined by supply and demand.
• C. One-party rule with state allocation of resources.
• D. Collective farming with no private property.

Answer: (B)

Capitalism hinges on private ownership of resources and a free market where many private businesses compete. Prices arise from supply and demand, signaling what to produce and how much, and guiding investment decisions without central planning. This setup contrasts with systems that rely on government ownership and planning, one-party rule with state allocation, or collective farming without private property. The material describes capitalism precisely as a free market with privately owned businesses competing and prices determined by supply and demand.

Capitalism hinges on private ownership of resources and a free market where many private businesses compete. Prices arise from supply and demand, signaling what to produce and how much, and guiding investment decisions without central planning. This setup contrasts with systems that rely on government ownership and planning, one-party rule with state allocation, or collective farming without private property. The material describes capitalism precisely as a free market with privately owned businesses competing and prices determined by supply and demand.