Which system is based on the private ownership of wealth, including private property, profit, competition, and laissez-faire?

Which system is based on the private ownership of wealth, including private property, profit, competition, and laissez-faire?

• A. Capitalism
• B. Socialism
• C. Market socialism
• D. Communism

Answer: (A)

Private ownership of wealth, along with the pursuit of profit, competition, and limited government intervention, defines capitalism. In this system individuals and firms own land, buildings, and other resources, use them to generate profits, and compete with one another to offer goods and services. Competition tends to drive efficiency, innovation, and better prices for consumers, while laissez-faire refers to a philosophy of minimal government interference in daily economic activities—letting markets mostly set prices and allocate resources. The other options describe different setups: socialism centers on public or collective ownership of the means of production; market socialism mixes private ownership with more state or cooperative oversight; communism aims for common ownership of all means of production and a classless society. Hence, the described system is capitalism.

Private ownership of wealth, along with the pursuit of profit, competition, and limited government intervention, defines capitalism. In this system individuals and firms own land, buildings, and other resources, use them to generate profits, and compete with one another to offer goods and services. Competition tends to drive efficiency, innovation, and better prices for consumers, while laissez-faire refers to a philosophy of minimal government interference in daily economic activities—letting markets mostly set prices and allocate resources. The other options describe different setups: socialism centers on public or collective ownership of the means of production; market socialism mixes private ownership with more state or cooperative oversight; communism aims for common ownership of all means of production and a classless society. Hence, the described system is capitalism.