Capitalism is an economic system based upon private ownership of the means of production and their operation for profit. Characteristics central to capitalism include private property, capital accumulation, wage labor, voluntary exchange, a price system, and competitive markets.
Considering this, what does a capitalist economy mean?
capitalism. [kap-i-tl-iz-uh m] an economic system in which investment in and ownership of the means of production, distribution, and exchange of wealth is made and maintained chiefly by private individuals or corporations, especially as contrasted to cooperatively or state-owned means of wealth.
Who owns businesses in a capitalist society?
This economic system is also known by other names, such as a free market or laissez-faire economy. Business owners often find more success in capitalistic economies because private ownership allows individuals to produce various goods or services and keep business profits for themselves.
What are the advantages of a capitalist economy?
The advantages of capitalism include: Consumer choice - Individuals choose what to consume, and this choice leads to more competition and better products and services. Efficiency of economics - Goods and services produced based on demand create incentives to cut costs and avoid waste.