Question 7
Economic SystemsA capitalist economy is one characterized by the
- A.private ownership of factors of production
- B.ownership of factors of production by rich members of the society
- C.use of capital and labour in fixed proportions during production
- D.use of capital intensive methods of production.
Show the answer and explanation
Answer: A (private ownership of factors of production)
Explanation
Under capitalism, land, capital and businesses are owned by private individuals and firms.