Final answer:
The scenario presented, involving profit-making from privately owned production facilities using stockholders' funds, exemplifies Capitalism. This economic system is marked by private ownership, profit generation for investors, and a market-driven approach to prices and wages, as opposed to government-controlled systems like communism.
Step-by-step explanation:
If a nation is producing goods to make a profit, using money from stockholders, and the factories are privately owned, this is an example of Capitalism. In a capitalist economy, private individuals and companies own the means of production and the impetus is on producing profit and wealth. Investors or stockholders invest capital in a business to produce goods or services sold in a market to consumers, and are entitled to a share of the profits, often reinvesting to improve and expand the business or to start new ventures.
Under capitalism, such as that in the United States, there is a competitive economic system with private citizens owning the production factors. Unlike communism, where the government controls all means of production, or socialism that can have a mix of private ownership and government control, capitalism is characterized by private ownership and market-determined prices and wages.
As described in the example, investors like Sarah, Antonio, and Chris reinvest their returns from the privately owned company to further personal and business growth. This illustrates the capitalist principle where individuals are assumed to be motivated by acquisitiveness and investments are driven by the prospect of returns.