Capitalism is characterized by which of the following features?

Capitalism is fundamentally characterized by the principle of private ownership of the means of production. This system allows individuals and businesses to own resources, factories, and equipment necessary for production. In a capitalist economy, individuals make decisions about production and distribution based on market forces, such as supply and demand, rather than government directives.

Private ownership ensures that the owners have the incentive to operate efficiently, innovate, and respond to consumer needs. This leads to a competitive market where the best products and services can thrive, ultimately benefiting consumers through choice and lower prices. The profit motive in capitalism encourages entrepreneurs to create and sustain businesses, which promotes economic growth and development.

In contrast, government ownership, central planning, and equality in wealth distribution are characteristics more aligned with socialist or communist economic systems. These alternatives focus on collective ownership and distribution, which fundamentally differ from the core principles of capitalism.