📚 Learning Guide
Capitalism vs. Socialism
easy

In a capitalist economy, what is the primary role of private property?

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Learning Path

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Choose the Best Answer

A

To allow government regulation of resources

B

To enable individual ownership and wealth accumulation

C

To ensure equal distribution of goods

D

To eliminate competition among businesses

Understanding the Answer

Let's break down why this is correct

Answer

In a capitalist economy, the primary role of private property is to give individuals and businesses the right to own and control resources and goods. This ownership encourages people to invest in their property, improving it and making it more valuable. For example, if someone owns a piece of land, they can choose to build a house or start a business, which can lead to profits and growth. This system motivates people to work hard and innovate, as they can keep the rewards of their efforts. Overall, private property is essential because it drives economic activity and personal responsibility in a capitalist society.

Detailed Explanation

Private property allows people to own things like houses and businesses. Other options are incorrect because Some might think private property means the government controls resources; It's a common belief that private property ensures everyone gets the same amount.

Key Concepts

private property
Topic

Capitalism vs. Socialism

Difficulty

easy level question

Cognitive Level

understand

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