Question

In terms of production, what best describes the difference between capitalism and socialism?

Capitalism is a system in which goods are made by private businesses, but socialism stresses government control over production.
Capitalism is a system in which the government controls production, but socialism stresses production by private businesses.
Capitalism is a system in which people pursue their own self-interests, but socialism stresses an equal distribution of wealth.
Capitalism is a system in which government should “plan” the economy, but socialism stresses that free market dictates production.

Answer 1

The first statement. Capitalism relies on private businesses owning the means of production and making goods, while socialism emphasizes government or collective control over production.