This economic and political system is dominated by private enterprises. The factors of production are owned by private individuals or firms. This system believes in a free-market economy and encourages ownership of private property and creation of wealth. Identify this system.

Socialism

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Communism

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Capitalism

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Marxism

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Solution

The correct option is C Capitalism
Capitalism is an economic and a political system in which the factors of production are owned by private individuals or firms. The sole desire to earn a profit presides over their decisions. Capitalism supports a free-market economy that encourages ownership of private property and wealth creation. Majority of countries in the world are capitalistic in nature with welfare policies that aim to achieve socialistic principles of economic, social, and political equality.

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Similar questions

Q25. Which of the following statements are correct?

1. A mixed economy refers to market economy with strong regulatory oversight and governmental provision of public goods.

2. A socialist economic system is characterized by social ownership and democratic control of the means of production.

3. Capitalism is an economic system in which capital goods are owned by private individuals.

4. Marxian economics provided a foundation for capitalism.

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