Question : The economic system in which all the means of production are owned and controlled by private individuals for profit.
Option 1: Socialism
Option 2: Capitalism
Option 3: Mixed economy
Option 4: Communism
Correct Answer: Capitalism
Solution :
The correct answer is (b) Capitalism
Capitalism is the economic system in which all the means of production are owned and controlled by private individuals for profit. In a capitalist system, individuals and businesses have the freedom to own and operate their own businesses, make decisions about production, and engage in voluntary exchanges in the pursuit of profit.
In this system, private individuals, rather than the government or collective ownership, own and control the factors of production, such as land, capital, and resources. They are free to invest their capital, start businesses, hire employees, and engage in trade based on their own self-interest and profit motive.
One of the key principles of capitalism is the emphasis on private property rights. Private individuals have the right to own and control property, including the means of production, and can use it as they see fit, within the bounds of the law. This provides individuals with the incentive to utilize resources efficiently and create wealth.
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