Several years ago, the nation of Florentina had a government-owned telecommunication system that lagged far behind other nations. In several of its rural areas, there was only one phone for an entire village of people. Government taxes collected for the purpose of maintaining the telephone system were very meager, so the notion of expanding service was almost impossible. The government of Florentina decided to sell the phone company to a private firm. The private firm expanded rapidly. It reported that even poor consumers were willing to pay for a private phone line. This government decision and subsequent sale was:
A. A move toward nationalism.
B. A move toward communism.
C. A move toward socialism.
D. A move toward capitalism.

Explanation: Capitalism can be defined as the economic system in which the major industries in the economy is under the control of private owners. Most of the western countries of the world follow this approach in their economic system.

In the given case the govt. has sold their business of telecommunication to the private owners, hence, privatization is done so we can conclude that it is capitalism.

Answer Link