HISET Social Studies Practice 2026 - Free HISET Social Studies Practice Questions and Study Guide

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.