HISET Social Studies Practice

Disable ads (and more) with a membership for a one time $2.99 payment

Study for the HISET Social Studies Test. Access practice exams and detailed explanations to boost your confidence. Prepare effectively and succeed in your test!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which economic system is characterized by private property and free enterprise?

Socialism
Capitalism
Communism
Mixed economy

The correct answer is: Capitalism

The correct answer is indeed capitalism, which is defined by its emphasis on private property and free enterprise. In a capitalist system, individuals have the right to own and control their own resources and businesses, leading to a market-focused economy where supply and demand dictate prices and production. This framework encourages competition and innovation, as businesses strive to meet consumer needs and preferences. In contrast, socialism involves collective or governmental ownership of the means of production, redistributing resources more equally among the population. Communism goes a step further by advocating for a classless society and the absence of private property altogether. A mixed economy incorporates elements of both capitalism and socialism, blending free market principles with government intervention to address social inequities. However, the defining characteristic of capitalism remains its commitment to private ownership and a free market economy.