Which of the following statements best reflects the principles of capitalism?

The statement that best reflects the principles of capitalism emphasizes individual freedom and market dynamics. In a capitalist system, individuals and businesses operate in a market that is largely driven by supply and demand. This means that each individual has the freedom to make decisions that influence market trends, such as which products to buy and how much to sell them for. This principle of self-interest guides economic activity, fostering competition and innovation, which are hallmarks of capitalism.

The other statements do not align with capitalist principles. The focus on serving the public interest relates more to socialist or welfare state principles, while prioritizing basic necessities could imply a planned economy where the government controls production. Lastly, state ownership of all businesses is a defining characteristic of communism rather than capitalism, which thrives on private ownership.