What are the characteristics of capitalism? select all that apply. 1. the government sets prices and wages. 2. farms and factories are owned by private individuals. 3. people are free to pursue their own self-interests. 4. supply and demand determine which goods, and how many, are produced. 5. it is favored by philosopher karl marx.

Two, Three, and Four. 
Two because under capitalism, all industries are owned by private individuals.
Three because under capitalism, people are able to either work for someone else, or start their own business. 
Four because under capitalism, supply and demand are the core principle of capitalism. 
One and Five are both more of communism. Karl Marx came up with the communist manifesto, and wages being set by the government is a very authoritarian and leftist ideal. 

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