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In a capitalist system, the government doesn't own the property and doesn't decide how the property will be used - this is a false statement. This is a characteristic of a command economy or rather of a communist monetary system. 
This is false!
This statement would be true of a communist system, as in a communist system the government owns the property and decides on its distribution.

In a capitalist system the property (the "capital", hence the name) is in private hands and the owners can independently decide over it.