Capitalism is an economic system in which

A. The means of production and distribution are collectively owned.

B. The means of production are largely in private hands, and the main incentive for economic activity is the accumulation of profits.

C. All property is communally owned and no social distinctions are made on the basis of people's ability to produce.

D. None of these answers is correct.

Question

Kemp

Social Studies

2 September, 21:18

Capitalism is an economic system in which

A. The means of production and distribution are collectively owned.

B. The means of production are largely in private hands, and the main incentive for economic activity is the accumulation of profits.

C. All property is communally owned and no social distinctions are made on the basis of people's ability to produce.

D. None of these answers is correct.

+3

Answers (1)

Know the Answer?

Wendy Conrad · Answer 1

The correct answer is B. The means of production are largely in private hands, and the main incentive for economic activity is the accumulation of profits.

Explanation:

Capitalism is a type of economic system that prevails in most countries nowadays and is based on two main principles, the first one is the individual or private ownership which means properties and also means of production such as lands or factories belong to one person or one limited group of people instead of being collective; the second principle of Capitalisms is that it focuses on profit, in this way a person is considered as powerful depending on the amount of money or profits accumulated. Considering this, the option that describes the Capitalism is option B as in this includes that the means of production are in private hands and also the incentive or focus is the profits.