Which description best defines capitalism?

• A. A system where trade and industry are controlled by the state
• B. A system where private owners control trade and industry for profit
• C. A system where all services are run by the government
• D. A system where trade is unrestricted and unregulated

Answer: (B)

Capitalism centers on private ownership of resources and the means of production, with decisions about what to produce, how to produce, and for whom guided by the motive of profit and coordinated largely through markets. This makes the description of private owners controlling trade and industry for profit the best fit. The other ideas describe different systems: government ownership or control of trade and industry points to socialism or a command economy; government-run services reflect public provision rather than private enterprise; and an entirely unrestricted, unregulated trade ignores the regulatory framework that real-world economies maintain even when market activity is robust. So focusing on private ownership and the profit motive best captures what capitalism is.