Introductory Sociology CLEP Prep Practice Exam

Capitalism is the economic system that relies on the ownership of capital goods. This means that individuals or private businesses own the means of production, such as factories and machines, and use them to create goods and services for profit. Communism and socialism, on the other hand, advocate for collective or government ownership of capital goods. Liberalism, while also promoting individual ownership, does not emphasize the ownership of capital goods as a crucial aspect of the economic system.