What is capitalism?

A) investing money for profit

B) when supply is larger than demand

C) countries pile wealth build their power

D) families working from home to produce finished goods

Capitalism is investing money for profit.

Answer: Option A

Explanation:

Unlike other forms of economies, capitalism does not refer to piling money and sharing the profit equally in order to achieve prosperity of all. Capitalism is rather a system in which one who invests the money owns the profit gained from the investment. Capitalist economies are either a mix of public and private sector formations or may also be solely private in nature.

When an individual invests money (capital) in order to fetch profit from the investment, he bears the risk of loss. The profit received is the individual's reward for taking the risk of loss. This is basically a description of the primary level of functioning of a capitalist economy.