Read the passage carefully and answer the questions based on it.

If capitalism became the dominant economic system, nation states became the dominant political form. Societies however are not always organised along the lines of nation-states. Nation state pertains to a particular type of state, characteristic of the modern world. A government has sovereign power within a defined territorial area and the people are citizens of a single nation. Nation-state are closely associated with the rise of nationalism. The principle of nationalism assumes that any set of people have a right to be free and exercise sovereign power. It is an important part of the rise of democratic ideas. Nationalism implied that the people of India have an equal right to be sovereign. Indian nationalist during the colonial rule declared 'Swaraj' as their birth-right and fought for both political and economic freedom.

Which one of the following is not a characteristic of nation-states?

Capitalism

The correct answer is Option (4) → Capitalism

Nation-states are political entities characterized by specific features, including territoriality, citizenship, and sovereignty:

1. Territoriality: Nation-states have defined geographical boundaries over which they exercise control and authority. This territoriality is essential for maintaining order and governance within a specific geographic area.

2. Citizenship: Nation-states grant citizenship to individuals who belong to that particular state. Citizenship entails certain rights, responsibilities, and privileges, including the right to vote, access to social services, and protection under the law.

3. Sovereignty: Nation-states possess sovereignty, which means they have the ultimate authority and independence to govern themselves without external interference. Sovereignty includes the ability to make decisions regarding internal affairs, establish laws, and engage in diplomacy with other states.

   "Capitalism," on the other hand, is an economic system characterized by private ownership of the means of production, market competition, and the pursuit of profit. While many nation-states may adopt capitalist economic policies, capitalism itself is not an inherent characteristic of nation-states. Nation-states can adopt various economic systems, including capitalism, socialism, or mixed economies, depending on their political and ideological orientations. Therefore, option 4, "Capitalism," is not a characteristic of nation-states.