A major feature of capitalism is

Step 1: Analyze the question The question asks for a major feature of capitalism, which is an economic system.

Step 2: Explain the concept Capitalism (the free enterprise or market economy) is built on these core features:

• Private ownership of property and the means of production
• Profit motive
• Freedom of enterprise and choice
• Competition among producers and sellers
• The price mechanism, where market forces of demand and supply decide what, how, and for whom to produce

Step 3: Evaluate each option

• A. Collective ownership of means of production: This is a feature of socialism and communism, not capitalism. ❌
• B. Competition: Firms compete for customers and profit, and this drives efficiency and innovation. This is a defining feature of capitalism. ✅
• C. Equality or egalitarianism: This is a goal of socialist systems. Capitalism tends to produce income inequality. ❌
• D. Redistribution of income: This is typical of socialist or welfare-oriented systems, through heavy taxation and state transfers. ❌
• E. Socialization and welfare: The word "socialization" points to socialism and the welfare state. ❌

Step 4: Answer The correct option is B. competition.

Exam tip: Link each system to its key words:

• Capitalism: private ownership, profit, competition, price mechanism
• Socialism: collective or state ownership, equality, welfare, redistribution

If an option sounds like "sharing," "collective," or "equal," it usually belongs to socialism, not capitalism.