Explain how capitalism deals with the factors of production. (1 point)
In capitalism the factors of production are owned by the ruling elite.
In capitalism the factors of production are owned by the government.
In capitalism the factors of production are collectively owned by all people in the country.
In capitalism the factors of production are privately owned.
In capitalism, the factors of production are privately owned. This means that individuals, businesses, and corporations own the resources needed to produce goods and services. These resources include land, labor, capital (such as machinery and technology), and entrepreneurship.
Under capitalism, individuals have the freedom to own and control these factors of production. They can buy, sell, and utilize these resources as they see fit, with limited government intervention. This allows individuals to make decisions based on their own self-interest and profit motives.
Private ownership of the factors of production in capitalism encourages competition and innovation. Individuals are motivated to use their resources efficiently and produce goods and services that are in demand in order to maximize their profits. The profit motive also incentivizes investment in new technologies, which can lead to economic growth and increased productivity.
Overall, in a capitalist system, the ownership and control of the factors of production are in the hands of private individuals and entities, rather than the government or the collective population.