Question

Under capitalism:

A. Most of the means of production and distribution are privately owned and operated for profit.
B. The primary function of the government is to distribute wealth more evenly.
C. Utilities, health care, education, and other important services are operated by the government.
D. Markets operate to carry out the decisions made by central planners.

Answer 1

A is the correct option.

Step-by-step explanation:

The economic system in which the individuals own the capital goods is known as capitalism. The law of demand and supply operates the market and is known as the market economy. While in a socialist system the centralized planning by the government controls the market. The economies following both the mixture of Capitalist and Socialist principles is known as Mixed economy. The USA is a capitalist economy, former USSR was a Socialist economy and India is a Mixed economy. The purest form of capitalism if Laissez-faire capitalism. In this, private individuals are not restrained by the government in their investment decisions.