Question

which of the following best describes capitalism?

a. an economic system focused on adherence to government policy and procedure
b. an economic system where most products and services are provided by businesses and individuals, but some products and services are provided by the government
c. a planned economic system
d. an economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants
e. a system where the government controls the production of products and services

Explanation:

To determine the best description of capitalism:

• Option A: Focus on government policy/procedure is not capitalism (more like bureaucratic or command - like, not capitalist).
• Option B: Mixed economy (has both private and government provision) is not pure capitalism.
• Option C: Planned economic system is socialism/communism - style, not capitalism.
• Option D: Capitalism is an economic system where individuals and businesses produce/sell based on customer needs/wants (free market, private ownership, profit - motive, responding to demand).
• Option E: Government control of production is command economy, not capitalism.

Answer:

D. An economic system where individuals and businesses are responsible for producing and selling goods and services based on customer needs and wants