Marx understood capitalism as a system of:
A. Commodity production
B. Production for the market
C. Use of wage labour
D. Money Power

Only A, B and C

The correct answer is Option 1: Only A, B and C.

Statement A: Commodity production. – Correct. Marx understood capitalism as a system in which commodities are produced primarily for exchange in the market.

Statement B: Production for the market. – Correct. The main objective of capitalist production is to produce goods for sale and profit rather than for direct consumption.

Statement C: Use of wage labour. – Correct. Workers sell their labour power for wages, while capitalists employ wage labour to produce commodities.

Statement D: Money Power. – Incorrect. Marx described capitalism as being based on commodity production, production for the market, and wage labour. The term money power is not identified as a defining feature of capitalism in this context.

NCERT: "One of the founders of modern sociology, Karl Marx, was also a critic of modern capitalism. Marx understood capitalism as a system of commodity production, or production for the market, through the use of wage labour. As you have already learned, Marx wrote that all economic systems are also social systems. Each mode of production consists of particular relations of production, which in turn give rise to a specific class structure. He emphasised that the economy does not consist of things (goods circulating in the market), but is made up of relations between people who are connected to one another through the process of production. Under the capitalist mode of production, labour itself becomes a commodity, because workers must sell their labour power in the market to earn a wage. This gives rise to two basic classes – capitalists, who own the means of production (such as the factories), and workers, who sell their labour to the capitalists. The capitalist class is able to profit from this system by paying the workers less than the value of what they actually produce, and so extracting surplus value from their labour. Marx’s theory of capitalist economy and society provided the inspiration for numerous theories and debates about the nature of capitalism throughout the nineteenth and twentieth centuries."