Final answer:
According to Karl Marx, the bourgeoisie is the social group that owns the means of production and exploits the working class, known as the proletariat, leading to social and economic inequality.
Step-by-step explanation:
According to Karl Marx, the social group that possesses capital and owns the means of production are called the bourgeoisie. This group, which emerged primarily during the rise of capitalism and industrial society, exerted control over the proletariat or working class, who only owned their labor power and were paid wages for their work. Marx believed this created an imbalanced society where the bourgeoisie could exploit the proletariat, resulting in economic and social inequality. The proletariat's labor produced surplus value that the capitalists accumulated, leading to private accumulation of wealth and power. Marx predicted that eventually the capitalist system would collapse and be replaced by socialism, where the means of production would be owned collectively by the public, ensuring equality and eliminating class conflict.