Which of the following statements best describes the fundamental difference between capitalism and socialism, particularly in the context of competition and individualism in socialist countries?

The fundamental difference between capitalism and socialism lies in how resources and businesses are owned and managed. In capitalism, individuals or private companies own businesses and compete freely in the market, which encourages innovation and personal success. In contrast, socialism emphasizes collective ownership, where the government or the community controls resources and aims to distribute wealth more equally among people. This often leads to less competition because businesses may not compete for profit in the same way, which can result in less individual initiative. For example, in a socialist country, if a factory is owned by the government, the workers may not have the same incentives to work hard as they would in a privately-owned factory where their efforts could lead to personal financial gain.