Capitalism is an economic system in which which type of entities primarily own and control capital goods and productive resources?

Introduction / Context:
Different economic systems are classified based on who owns and controls the means of production, especially capital goods such as factories, machines and financial assets. Capitalism is one of the most widely discussed systems in economics and political science. Questions about capitalism typically ask you to identify its defining feature, which is private ownership and control of capital goods and the presence of markets where goods and services are exchanged for profit. Understanding this clearly helps distinguish capitalism from socialism, mixed economies and command economies.

Given Data / Assumptions:

• The question is about the basic definition of capitalism.
• Capital goods include tools, machines, factories and equipment used to produce other goods.
• Ownership and control patterns determine the label given to an economic system.
• The focus here is on who primarily owns capital goods in a capitalist system.

Concept / Approach:
In a capitalist system, private individuals and business firms own most of the productive resources and capital goods. They make production and investment decisions based on profit motives and market signals such as prices. The government may still regulate or own some sectors, but the dominant mode is private ownership and market based allocation. In contrast, in a socialist or command economy, the state owns and controls most major means of production. Therefore, any option that describes government or public ownership of all capital goods would characterise a different system, not capitalism.

Step-by-Step Solution:
Step 1: Focus on the phrase capital goods and ask who owns them in a capitalist system.Step 2: Recall that capitalism is associated with private property, private firms and market competition.Step 3: Compare the options and locate the one that states private individuals and firms own and control most capital goods.Step 4: Confirm that this description matches the standard definition of capitalism and select it as the correct answer.

Verification / Alternative check:
To verify, you can think of classical examples such as the United States or other market based economies, where private companies own factories, technology and other capital goods, while individuals own financial capital and real assets. The government does regulate and tax these entities, but it does not normally own all productive resources. Textbook definitions also emphasise private ownership of capital, voluntary exchange and profit seeking behaviour as hallmarks of capitalism. This confirmation from real world examples and theory assures you that the private ownership option is correct.

Why Other Options Are Wrong:
Option B is wrong because it describes a system where public entities own all capital goods, which is closer to a socialist or command economy. Option C is incorrect because international organisations such as the International Monetary Fund do not directly own the major industries of a country. Option D is wrong because religious institutions may own some property in specific cases, but they do not define the overall structure of a capitalist economy. Only option A captures the central feature that private individuals and firms own and control most capital goods in capitalism.

Common Pitfalls:
A common confusion is between capitalism and mixed economies, where both private and public sectors coexist. Even in a mixed economy, if the private sector dominates capital ownership, the system is usually still described as broadly capitalist. Students may also mistakenly equate capitalism only with free trade or only with democracy. For exam purposes, the safest and most precise way to remember the concept is that capitalism means predominantly private ownership of capital goods operating through markets for profit.

Final Answer:
Capitalism is an economic system in which private individuals and firms own and control most capital goods and productive resources.