Which term describes a capitalist economic system characterized by private ownership of productive assets?

Which term describes a capitalist economic system characterized by private ownership of productive assets?

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

Answer: (A)

Private ownership of productive assets is the defining feature of capitalism. Means of production like land, factories, and machines are owned by individuals or firms, not by the state or the community. Decisions about what to produce, how to produce, and what to invest in come from market forces—competition, prices set by supply and demand, and the pursuit of profit. Labor markets allocate workers to jobs, and production is guided largely by voluntary exchange within a market framework, with varying levels of government regulation but no overarching state ownership of the means of production. Socialism centers on public or collective ownership and often planning of production to meet social goals. Communism aims for common ownership and a classless society, typically envisioned as stateless in theory. Feudalism is a historical system where land is owned by a ruling class and worked by peasants under a rigid hierarchy, not a market-based private-property system. So the term that matches private ownership of productive assets is capitalism.

Private ownership of productive assets is the defining feature of capitalism. Means of production like land, factories, and machines are owned by individuals or firms, not by the state or the community. Decisions about what to produce, how to produce, and what to invest in come from market forces—competition, prices set by supply and demand, and the pursuit of profit. Labor markets allocate workers to jobs, and production is guided largely by voluntary exchange within a market framework, with varying levels of government regulation but no overarching state ownership of the means of production.

Socialism centers on public or collective ownership and often planning of production to meet social goals. Communism aims for common ownership and a classless society, typically envisioned as stateless in theory. Feudalism is a historical system where land is owned by a ruling class and worked by peasants under a rigid hierarchy, not a market-based private-property system.

So the term that matches private ownership of productive assets is capitalism.