Future Business Leaders of America (FBLA) Agribusiness Practice Test

Which economic system is characterized by private ownership with minimal government involvement?

1. Socialism

2. Capitalism

3. Communism

4. Fascism

The correct answer is: Capitalism

The correct choice emphasizes capitalism, which is an economic system defined by private ownership of resources and means of production, allowing individuals and businesses to operate with minimal interference from the government. In capitalism, the market largely determines prices, production, and distribution of goods and services based on supply and demand dynamics. This system encourages competition and innovation, as businesses strive to improve products and services to attract consumers. In contrast, socialism involves more significant government intervention and public ownership, where the state often plays a crucial role in planning and redistribution to promote economic equality. Communism extends this idea further by seeking to eliminate private property altogether, advocating for a classless society where all resources are collectively owned. Fascism, while allowing for private ownership, typically includes strong governmental control over the economy and may prioritize state power and nationalism over individual entrepreneurial freedoms. Thus, the emphasis on private ownership and limited government role distinctly identifies capitalism as the correct answer.