Which economic system is based on private ownership of the means of production?

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Explore the IGCSE Sociology Exam. Study with comprehensive quizzes featuring multiple-choice questions, detailed explanations, and hints. Prepare confidently for your exam!

Multiple Choice

Which economic system is based on private ownership of the means of production?

Explanation:
Private ownership of the means of production is the defining idea being tested. In capitalism, individuals or private firms own land, factories, and other productive resources, and they decide how to use them, guided by market competition and the pursuit of profit. This ownership and market-driven decision-making set capitalism apart from other concepts that describe social issues rather than a particular economic system. The other terms refer to social patterns or barriers, not to who owns productive resources. So, the system defined by private ownership of the means of production is capitalism.

Private ownership of the means of production is the defining idea being tested. In capitalism, individuals or private firms own land, factories, and other productive resources, and they decide how to use them, guided by market competition and the pursuit of profit. This ownership and market-driven decision-making set capitalism apart from other concepts that describe social issues rather than a particular economic system. The other terms refer to social patterns or barriers, not to who owns productive resources. So, the system defined by private ownership of the means of production is capitalism.

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