Capitalism is an economic system which emphasises_______________

Step 1: Analyze the question The question asks which idea capitalism emphasises as an economic system.

Step 2: Explain the concept Capitalism is a system in which the means of production (land, factories, capital) are owned and controlled by private individuals or firms, not by the state. Its key features are:

• Private ownership of property
• Profit motive
• Free market competition
• Minimal government interference
• Freedom of choice for individuals and businesses

All of these put the individual at the centre of economic life.

Step 3: Evaluate the options

• A. Communism: This is a separate system, where the state or community owns the means of production. It is the opposite of capitalism.
• B. Collectivism: This stresses group or state ownership and control, as in socialism and communism. It is also the opposite of capitalism.
• C. Individualism: This stresses individual rights, private enterprise, and personal initiative. It matches capitalism.
• D. Internationalism: This is about cooperation among nations. It has nothing to do with the ownership of production.

Step 4: Answer The correct option is C. Individualism.

Exam tip: Remember the pairs:

• Capitalism → Individualism → Private ownership
• Socialism/Communism → Collectivism → State or public ownership

If a question asks what capitalism stresses, look for words like "private," "individual," "competition," or "profit." If you see "collective" or "state," that option belongs to socialism or communism.