The correct answer is: B. The country’s major means of production are either owned by the government or their use is controlled by the government.
Capitalism is an economic system based on the private ownership of capital and the means of production. In a capitalist system, individuals and businesses are free to buy and sell goods and services, and to invest in and own property. The government’s role in a capitalist system is to provide a stable environment for businesses to operate in, and to protect private property rights.
Socialism is an economic system in which the means of production are owned and controlled by the state. In a socialist system, the government plans and controls the economy, and businesses are owned and operated by the state.
The key difference between capitalism and socialism is the role of the government in the economy. In a capitalist system, the government plays a limited role, while in a socialist system, the government plays a much larger role.
Option A is a characteristic of capitalism. In a capitalist system, individuals and businesses are motivated to maximize their profits. This is because profits are a measure of success in a capitalist system.
Option C is also a characteristic of capitalism. In a capitalist system, producers, consumers, and employees compete with each other. This competition drives down prices and leads to innovation.
Option D is also a characteristic of capitalism. In a capitalist system, the price of goods and services is determined by supply and demand. This is known as the “invisible hand” of the market.
Option B is not a characteristic of capitalism. In a capitalist system, the means of production are owned by individuals or businesses. The government does not own or control the means of production in a capitalist system.