What economic framework allows individuals to own and operate their own businesses with minimal government intervention?

Study for the Mariemont HS Business Foundations Test. Utilize flashcards and multiple choice questions with helpful hints and explanations for better preparation. Get ready for success!

The correct answer is capitalism, which is an economic system characterized by private ownership of the means of production and the operation of businesses for profit. In a capitalist framework, individuals have the freedom to start and run their own businesses with limited government interference. This system encourages competition, innovation, and the efficient allocation of resources, as individuals make decisions based on supply and demand without excessive regulatory constraints.

In contrast, socialism and communism involve significant government involvement in the economy and often restrict individual business ownership. Socialism emphasizes the redistribution of wealth and often involves state control over key industries, while communism aims for a classless society where all property is publicly owned. Fascism, while allowing private property, centralizes control in a dictatorial government that regulates major aspects of the economy and society, limiting individual business freedom. Thus, capitalism stands out as the framework that supports individual entrepreneurship with minimal government intervention.

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