Which one of the following central features is not associated with Capitalist Economy?

A capitalist economy is characterized by the private ownership of productive wealth and the means of production [1]. In this system, economic life is organized according to market principles, where the market mechanism—driven by supply, demand, and price signals—settles major decisions regarding production and consumption. It is also defined by generalized commodity production, where goods are produced for exchange and have market value. In contrast, economic organization based on planning and rational resource allocation by a central authority is the defining feature of a command or planned economy [3]. In such systems, the government or central planners, rather than market forces, determine what is produced and how resources are distributed [1]. Therefore, planning is not a central feature of capitalism, which relies on decentralized decision-making by private firms and individuals.

Sources

1. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 6: Open Economy Macroeconomics > National Income Identity for an Open Economy > p. 100
2. [3] https://www.investopedia.com/terms/c/command-economy.asp