Name the system in which the means of production and distribution are privately or corporate owned and development is proportionate to the accumulation and reinvestment of profits which are gained in a free market ?
Correct answer: A. Capitalism
- A. Capitalism
- B. Socialism
- C. Free market economy
- D. Liberalism
Explanation
Capitalism is based on private ownership of production, profit-driven investment and market exchange. Socialism emphasizes public or collective ownership, while a free-market economy describes mainly the pricing mechanism rather than the full ownership system.
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