Which economic system describes individuals and private businesses making most economic decisions, with property privately owned?

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

Answer: (B)

The main idea here is how economic systems differ in who controls production and who owns property. In capitalism, individuals and private businesses make most economic decisions—what to produce, how to produce it, and for whom—driven by market prices and competition. Property is privately owned, which provides incentives for entrepreneurship and investment and coordinates resources through voluntary transactions.

This differs from other systems: in communism, the state or community owns the means of production and makes most economic decisions, with little private property. In socialism, the public or state often owns major resources and directs many key economic choices, though some private property may exist in mixed forms. Feudalism centers on land ownership by lords and obligations within a hierarchical manor system, not on private firms deciding production via market signals.

So, the description fits capitalism best because it highlights private ownership and private actors directing economic decisions.