The desire for profits is a major feature of

1. Analyze the question The question asks which type of economic system is mainly driven by the profit motive, meaning people and firms produce goods and services mainly to make profit.

2. Explain the concept An economic system is the way a society decides what to produce, how to produce it, and for whom. The main systems are:

• Traditional economy: Decisions follow custom, culture, and inherited practice. Production is mostly for survival, as in some subsistence farming communities.
• Command economy: The government owns the resources and makes the decisions through central planning. The goal is to serve state objectives, not private profit.
• Market (capitalist) economy: Private individuals and firms own resources and decide what to produce. Prices are set by demand and supply. The profit motive is the main driving force.
• Mixed economy: Combines private enterprise and government involvement, as in Nigeria. Profit matters in the private sector, but it is not the defining feature of the whole system.

3. Solution

• A. Traditional economy: driven by custom, not profit. ❌
• B. Mixed economy: profit exists, but the system is a blend with government goals too, so profit is not its major feature. ❌
• C. Market economy: private ownership, competition, and the desire for profit are central. ✅
• D. Command economy: state planning replaces the profit motive. ❌

4. Answer The desire for profit is a major feature of a market economy, which is option C.

5. Exam tip Link each system to its keyword:

• Traditional → custom
• Command → government planning
• Market → profit and price mechanism
• Mixed → both private and public sectors

When you see "profit," think market economy.