In capitalism, the factors of production are privately owned. Therefore, option A is the correct answer.
We need to explain how capitalism deals with the factors of production.
What is capitalism as a factor of production?
Capitalism is a system of economic production which is controlled by market forces rather than a central government. Business owners acquire the means of production and hire workers who get paid for their labour under capitalist structures.
The 3 main features of capitalism:
Capitalism has many unique features, some of which include a two-class system, private ownership, a profit motive, minimal government intervention, and competition.
Capitalism is an economic system characterized by private ownership of the means of production, especially in the industrial sector, with labour paid only wages.
In capitalism, the factors of production are privately owned. Therefore, option A is the correct answer.
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