In a capitalist system, the government should:

• A. control all production and distribution
• B. own most of the resources
• C. set prices for all goods and services
• D. limit its role in the economy

Answer: (D)

Verified step by step guidance

1. Understand the characteristics of a capitalist economic system, which is primarily based on private ownership and market-driven decisions rather than government control.
2. Recognize that in capitalism, production and distribution are mainly managed by private individuals or firms, not the government, so the government does not control all production and distribution.
3. Note that resources in a capitalist system are mostly owned by private individuals or companies, meaning the government does not own most of the resources.
4. Acknowledge that prices in a capitalist economy are generally determined by supply and demand forces in the market, rather than being set by the government.
5. Conclude that the government's role in a capitalist system is to limit its intervention, allowing markets to operate freely while providing necessary regulations to ensure fair competition and protect property rights.