Which aspect is NOT a characteristic of capitalism?

• A. Private ownership
• B. Government control of production
• C. Profit motivation
• D. Market competition

Answer: (B)

Capitalism is fundamentally characterized by private ownership of resources and businesses, where individuals or corporations own and manage production, rather than the state. This distinction allows for personal freedom and the opportunity to generate profits, which is a key motivator in a capitalist economy. The motivation for profit encourages innovation and efficiency, driving businesses to improve their offerings and compete in the marketplace.

Market competition, another hallmark of capitalism, ensures that multiple firms can compete for consumers, which helps keep prices in check and encourages quality improvements.

In contrast, government control of production is not a characteristic of capitalism; rather, it aligns more closely with a socialist or planned economic system, where the government plays a significant role in directing economic activity and making production decisions. Thus, the correct answer indicates that government control does not belong in the capitalist framework, highlighting the emphasis on individual ownership and minimal state intervention in economic affairs.