Which term describes a way of organizing an economy so that the things used to make and transport products are owned by individuals and companies?

• A. Capitalism
• B. Communism
• C. Socialism
• D. Feudalism

Answer: (A)

Private ownership of the means of production and the use of markets to allocate resources define capitalism. In this system, individuals and firms own factories, farms, and transportation networks, and decisions about what to produce, how to produce, and for whom are guided largely by prices and competition. Government involvement tends to be limited, mainly focused on enforcing laws and providing public goods, rather than owning productive assets.

Communism envisions collective or state ownership of production with central planning guiding outputs. Socialism emphasizes public or cooperative ownership and redistribution, though some forms allow private property and markets to operate alongside public control. Feudalism centers on land owned by a nobility, with production organized around hierarchical obligations rather than market-driven exchange.

So the description fits capitalism best.