What is one key feature of capitalism?

• A. Public ownership of production
• B. Private ownership of production
• C. State-controlled economy
• D. Central planning

Answer: (B)

One key feature of capitalism is private ownership of production. In a capitalist economic system, individuals and businesses own the means of production, such as factories, land, and resources. This ownership allows for decisions regarding the production of goods and services to be made by private entities rather than the state. The emphasis on private ownership promotes competition and innovation, as businesses strive to provide better products and services to consumers to maximize profits.

In contrast to other systems, such as socialism or communism, where the state or the public owns production means, capitalism relies on the free market dynamics where supply and demand dictate economic outcomes. This focus on private ownership is fundamental to the operation and growth of capitalist economies, fostering an environment where entrepreneurship can flourish.