How is "capitalism" best defined?

Capitalism is best defined as an economic system controlled by private owners for profit. This definition captures the essence of capitalism, emphasizing the role of private individuals and companies in owning and managing resources and industries. In a capitalist system, the market is driven by supply and demand, where prices are determined by competition in a free market rather than government intervention. Private enterprise and profit motives are central to this economic system, enabling innovation and efficiency as businesses seek to meet consumers’ needs effectively.

In contrast, the other options highlight different economic principles or systems that do not align with the core characteristics of capitalism. For instance, a system controlled by the state reflects socialism or communism, where the government plays a significant role in resource allocation and production. Barter trade emphasizes a non-monetary exchange system that is not characteristic of modern capitalism, which relies heavily on currency and market mechanisms. Lastly, an economic system advocating for equal distribution of resources aligns more with socialism, where equality in resource distribution is prioritized over individual profit motives.