Which term means private ownership of resources by individuals?

• A. Capitalism
• B. Socialism
• C. Communism
• D. Mixed economy

Answer: (A)

Private ownership of resources by individuals is a defining feature of capitalism. In a capitalist system, people and businesses have the right to own land and capital, decide how to use them, and engage in voluntary exchanges in competitive markets. Prices and profits guide resource allocation, with relatively limited government intervention shaping but not dictating production. This focus on private property and market-driven decisions sets capitalism apart from other systems that emphasize public or collective ownership, central planning, or a mix of private and public control. Socialism emphasizes ownership by the public or the state, communism envisions common ownership with little to no private property, and a mixed economy combines private ownership with significant government involvement.